Location-Price Competition in Airline Networks

H. Gao, J. Hu, V. Mazalov, A. Shchiptsova, Ligang Song () and J. Tokareva

Journal of Applied Mathematics, 2014, vol. 2014, 1-9

Abstract:

This paper addresses location-then-price competition in airline market as a two-stage game of n players on the graph. Passenger’s demand distribution is described by multinomial logit model. Equilibrium in price game is computed through best response dynamics. We solve location game using backward induction, knowing that airlines will choose prices from equilibrium for the second-stage game. Some numerical results for airline market under consideration are presented.

Date: 2014
References: Add references at CitEc
Citations:

Downloads: (external link)
http://downloads.hindawi.com/journals/JAM/2014/494103.pdf (application/pdf)
http://downloads.hindawi.com/journals/JAM/2014/494103.xml (text/xml)

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:hin:jnljam:494103

DOI: 10.1155/2014/494103

Access Statistics for this article

More articles in Journal of Applied Mathematics from Hindawi
Bibliographic data for series maintained by Mohamed Abdelhakeem ().