Advanced Search
MyIDEAS: Login to save this article or follow this journal

Multi-class Demand with Capacity Constraints: Theory and Estimation

Contents:

Author Info

  • Bryn Battersby
  • Edward Oczkowski

Abstract

This paper develops a theory of consumer discrete choice and an empirical model for multi-class demand in the presence of capacity constraints. A key aspect of the proposed theory is that the probability of the availability of a discrete alternative may be manipulated by expending resources. Optimal choice behaviour is described by the interaction between the expenditure of resources on manipulability and the relative utility benefits gained from each of the alternatives. In this context, the theory proposes that the expected available capacity for an alternative has an explicit impact on consumer choice and should be used in demand estimation. Empirically, a two-limit seven (class) equation multivariate Tobit model of regional airline travel in Australia is estimated and confirms the importance of expected capacity constraints in explaining the demand for the different classes of air travel. The implications for airline class settings strategies are also discussed. © 2010 LSE and the University of Bath

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.catchword.com/cgi-bin/cgi?ini=bc&body=linker&reqidx=0022-5258(20100101)44:1L.59;1-
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by London School of Economics and University of Bath in its journal Journal of Transport Economics and Policy (JTEP).

Volume (Year): 44 (2010)
Issue (Month): 1 (January)
Pages: 59-78

as in new window
Handle: RePEc:tpe:jtecpo:v:44:y:2010:i:1:p:59-78

Contact details of provider:
Web page: http://www.bath.ac.uk/e-journals/jtep

Related research

Keywords:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:tpe:jtecpo:v:44:y:2010:i:1:p:59-78. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.