Discrete choice modelling in airline network management

Michael Scheidler, Reinhard Hujer and Joachim Grammig ()
Additional contact information
Michael Scheidler: Faculty of Economics and Business Administration, University of Frankfurt, Germany, Postal: Faculty of Economics and Business Administration, University of Frankfurt, Germany
Reinhard Hujer: Faculty of Economics and Business Administration, University of Frankfurt, Germany, Postal: Faculty of Economics and Business Administration, University of Frankfurt, Germany

Journal of Applied Econometrics, 2005, vol. 20, issue 4, pages 467-486

Abstract: The task of airline network management is to develop new flight schedule variants and evaluate them in terms of expected passenger demand and revenue. Given the industry's trend towards global cooperation, this is especially important when evaluating the potential synergies with alliance partners. From the econometric point of view, this task represents a discrete choice modelling problem in which one has to account for a large number of dependent alternatives. In this paper we discuss the applicability of recently proposed approaches and introduce a new multinomial probit specification designed for the airline network management task. The superior performance of the new model is demonstrated in a real-world application using airline bookings data. Copyright © 2005 John Wiley & Sons, Ltd.

Date: 2005
View list of references

Downloads: (external link)
http://hdl.handle.net/10.1002/jae.799 Link to full text; subscription required (text/html)
http://qed.econ.queensu.ca:80/jae/2005-v20.4/ Supporting data files and programs (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:jae:japmet:v:20:y:2005:i:4:p:467-486

Ordering information: This journal article can be ordered from
http://www3.intersci ... e.jsp?issn=0883-7252

Access Statistics for this article

Journal of Applied Econometrics is edited by M. Hashem Pesaran

More articles in Journal of Applied Econometrics from John Wiley & Sons, Ltd.
Series data maintained by Christopher F. Baum ().