"Bob Noel" wrote in message
...
In article , "Mike Rapoport"
wrote:

If airports were managed properly, they would charge market rent for
hangars
and other space.

how is market rent set for a product/service whose supply is
restricted?

By supply and demand

It's not free supply and demand when the supply is artificially
restricted. Thus the concept of "market rent" doesn't make sense.
In the true supply and demand scenario, increased demand would
increase supply. That isn't possible (a fact you recognize below).

What would you do with real estate in general? Supply is artificially
restricted because there are parks and other open space. There are
undoubtedly people who say the the price of housing is too high because the
supply of land is artificially restricted by airports.

Mike
MU-2

--
Bob Noel