Location-Price Competition in Airline Networks
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 i...
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| Main Authors: | , , , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Wiley
2014-01-01
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| Series: | Journal of Applied Mathematics |
| Online Access: | http://dx.doi.org/10.1155/2014/494103 |
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| _version_ | 1832564670447222784 |
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| author | H. Gao J. Hu V. Mazalov A. Shchiptsova L. Song J. Tokareva |
| author_facet | H. Gao J. Hu V. Mazalov A. Shchiptsova L. Song J. Tokareva |
| author_sort | H. Gao |
| collection | DOAJ |
| description | 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. |
| format | Article |
| id | doaj-art-250397b3fcd7408a9d10cf363adff3a6 |
| institution | Kabale University |
| issn | 1110-757X 1687-0042 |
| language | English |
| publishDate | 2014-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Journal of Applied Mathematics |
| spelling | doaj-art-250397b3fcd7408a9d10cf363adff3a62025-02-03T01:10:30ZengWileyJournal of Applied Mathematics1110-757X1687-00422014-01-01201410.1155/2014/494103494103Location-Price Competition in Airline NetworksH. Gao0J. Hu1V. Mazalov2A. Shchiptsova3L. Song4J. Tokareva5College of Mathematics, Qingdao University, 308 Ningxia Road, Qingdao 266071, ChinaBusiness School, Qingdao University, 308 Ningxia Road, Qingdao 266071, ChinaInstitute of Applied Mathematical Research, Karelian Research Centre of the Russian Academy of Sciences, Pushkinskaya Street 11, Petrozavodsk 185910, RussiaInstitute of Applied Mathematical Research, Karelian Research Centre of the Russian Academy of Sciences, Pushkinskaya Street 11, Petrozavodsk 185910, RussiaCollege of Mathematics, Qingdao University, 308 Ningxia Road, Qingdao 266071, ChinaTransbaikal State University, Alexandro-Zavodskaya Street 30, Chita 672039, RussiaThis 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.http://dx.doi.org/10.1155/2014/494103 |
| spellingShingle | H. Gao J. Hu V. Mazalov A. Shchiptsova L. Song J. Tokareva Location-Price Competition in Airline Networks Journal of Applied Mathematics |
| title | Location-Price Competition in Airline Networks |
| title_full | Location-Price Competition in Airline Networks |
| title_fullStr | Location-Price Competition in Airline Networks |
| title_full_unstemmed | Location-Price Competition in Airline Networks |
| title_short | Location-Price Competition in Airline Networks |
| title_sort | location price competition in airline networks |
| url | http://dx.doi.org/10.1155/2014/494103 |
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