Non-Cooperative Game Theory in Measuring Strategic Interactions between Airline Joint-Venture Alliances

Dominik Boniecki and Elzbieta Marciszewska

European Research Studies Journal, 2021, vol. XXIV, issue 2 - Part 1, 152-164

Abstract: Purpose: The paper proposes a research method for measuring strategic interactions between airline joint-venture alliances that compete with each other. Design/Methodology/Approach: The proposed method is based on the non-cooperative game theory with a Nash-Cournot equilibrium. It consists in the development of a model that compares economic performance of airline long-haul, intercontinental operations in two consecutive scenarios, before and after joining an alliance. Findings: A model of strategic interactions between airline joint-venture alliances can be successfully based on the logic of the Nash-Cournot equilibrium. Furthermore, the game theory is an effective tool for analysing economic performance of airline joint business agreements. Practical Implications: The method can be used in measuring bottom line performance of long-haul airline joint business agreements world-wide. For example, on the EU–US airline market, the method can be used in the analysis of the following alliances: United Airlines – Lufthansa Group; American Airlines – International Airlines Group – Finnair; Delta Air Lines – Air France KLM – Virgin Atlantic. Originality/Value: This is a novel approach to research of advanced airline alliance strategies.

Keywords: Airline strategy; airline joint-ventures; economic performance; game theory. (search for similar items in EconPapers)
JEL-codes: B41 C72 D74 L93 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ersj.eu/journal/2118/download (application/pdf)

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: https://EconPapers.repec.org/RePEc:ers:journl:v:xxiv:y:2021:i:2-part1:p:152-164

Access Statistics for this article

More articles in European Research Studies Journal from European Research Studies Journal
Bibliographic data for series maintained by Marios Agiomavritis ().