An effect of consumer's earlier decision to purchase a discount ticket
AbstractIn this article, we consider how effect consumer's earlier decision to purchase a discount ticket will have on the competition, price and timetable, between airlines. We focus on a relationship between consumer's purchasing behavior and a competition between airlines. We consider that a consumer can purchase a ticket two times, i.e. ex-ante and ex-post, corresponding to this timing, airlines also can set their prices of tickets. The main conclusion highlighted by this article is that, in a subgame perfect equilibrium, each airline's expected profit is unique and timetable is socially optimal regardless to a consumer's purchasing behavior.
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 InfoPaper provided by Otaru University of Commerce in its series ビジネス創造センターディスカッション・ペーパー (Discussion papers of the Center for Business Creation) with number 10252/4502.
Length: 8 pages
Date of creation: 14 Feb 2011
Date of revision:
Publication status: Published in Discussion paper series (2011), 131: 1-8
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gaggero, Alberto A. & Piga, Claudio A., 2010.
"Airline competition in the British Isles,"
Transportation Research Part E: Logistics and Transportation Review,
Elsevier, vol. 46(2), pages 270-279, March.
- Encaoua, David & Moreaux, Michel & Perrot, Anne, 1996.
"Compatibility and competition in airlines demand side network effects,"
International Journal of Industrial Organization,
Elsevier, vol. 14(6), pages 701-726, October.
- Encacoua, D. & Moreaux, M. & Perrot, A., 1995. "Compatibility and Competition in Airlines: Demand Side Network Effect," Papiers d'Economie MathÃÂ©matique et Applications 95.21, UniversitÃ© PanthÃ©on-Sorbonne (Paris 1).
- Salvanes, Kjell G. & Steen, Frode & Sorgard, Lars, 2005. "Hotelling in the air? Flight departures in Norway," Regional Science and Urban Economics, Elsevier, vol. 35(2), pages 193-213, March.
- d'ASPREMONT, Claude & GABSZEWICZ, Jean J. & THISSE, Jacques-François, .
"On Hotelling's "Stability in competition","
CORE Discussion Papers RP
-385, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Brueckner, Jan K., 2002.
"Network Structure and Airline Scheduling,"
02-0112, University of Illinois at Urbana-Champaign, College of Business.
- Jan Brueckner & Ricardo Flores-Fillol, 2007. "Airline Schedule Competition," Review of Industrial Organization, Springer, vol. 30(3), pages 161-177, May.
- Schipper, Youdi & Rietveld, Piet & Nijkamp, Peter, 2003. "Airline deregulation and external costs: a welfare analysis," Transportation Research Part B: Methodological, Elsevier, vol. 37(8), pages 699-718, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Miura, Chiho).
If references are entirely missing, you can add them using this form.