Final answer:
Airport business models often engage in competitive market behaviors to generate revenue, while government entities typically rely on compulsory fees with less direct market competition. This affects organizational responsiveness and efficiency, with private companies more likely to make strategic decisions based on market pressures, compared to government entities which operate more bureaucratically.
Step-by-step explanation:
The differences between airport business models and typical government entities involve various aspects of revenue generation and decision-making processes. Airport business models, such as those pertaining to airlines, engage in competitive practices to earn revenue.
As an example, if a large airline dominates a specific route and a new competitor arises, the incumbent airline might engage in price competition to retain its position, potentially engaging in practices that could temporarily reduce profitability to drive out competition. This is an illustration of strategic business behavior in response to market forces which is typical of private companies.
In contrast, government entities like the Internal Revenue Service (IRS) or the Bureau of Consular Affairs (BCA) generate revenue primarily through compulsory fees or taxes and do not typically compete in open markets.
The BCA, for instance, charges fees for passport services and there is no competition; hence, there is little incentive within the monopolistic model to improve efficiency or responsiveness, as is evidenced by the lengthy processing times for passports unless an expedited service is paid for.
This indicates government decision-making is less influenced by competitive market pressures and more by bureaucratic considerations and public policy objectives.
The development of civil airline infrastructure, such as airports, also highlights these differences. While airports facilitate the growth of aviation businesses by providing necessary services and facilities, they may be operated by government entities or private companies; the business model chosen influences how decisions regarding pricing, expansion, and services are made.