The Role of Fences in Oligopolistic Airline Markets
AbstractIn this paper we simulate carriers' capacity allocation practices in order to investigate the role of fences and forecasting for maintaining high load factor levels and returns in oligopolistic airline markets. We analyse the case where firms apply a well-established revenue management heuristic, called the expected marginal seat revenue rule, extending the original set-up provided by Belobaba (1989) to account for different levels of forecasting, segmentation, and passenger participation. Substantial differences in terms of revenue and load factor emerge and a key role is played by fences. © 2010 LSE and the University of Bath
Download InfoIf 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.
Bibliographic InfoArticle 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): 2 (May)
Contact details of provider:
Web page: http://www.bath.ac.uk/e-journals/jtep
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Escobari, Diego & Lee, Jim, 2013. "Demand Uncertainty and Capacity Utilization in Airlines," MPRA Paper 46059, University Library of Munich, Germany.
- Marco Alderighi & Alessandro Cento & Peter Nijkamp & Piet Rietveld, 2011. "Second-degree Price Discrimination and Inter-group Effects in Airline Routes between European Cities," Tinbergen Institute Discussion Papers 11-118/3, Tinbergen Institute.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum).
If references are entirely missing, you can add them using this form.