Related papers: Common Subcontracting and Airline Prices
Demand forecasting is extremely important in revenue management. After all, it is one of the inputs to an optimisation method which aim is to maximize revenue. Most, if not all, forecasting methods use historical data to forecast the…
We examine how aircraft seat configuration interacts with daily operation in Regional Air Mobility by applying a joint supply-demand optimization framework that simultaneously determines market share, fare, and flight schedule. The…
Reverse pricing has been recognized as an effective tool to handle demand uncertainty in the travel industry (e.g., airlines and hotels). To investigate its viability for communication networks, we study the practical limitations of…
This study investigates how the layout and seat density in aircraft cabins influence the pricing of airline tickets on domestic flights. The analysis is based on microdata from boarding passes linked to face-to-face interviews with…
The optimal price of each firm falls in the search cost of consumers, in the limit to the monopoly price, despite the exit of lower-value consumers in response to costlier search. Exit means that fewer inframarginal consumers remain. The…
ISPs are increasingly selling "tiered" contracts, which offer Internet connectivity to wholesale customers in bundles, at rates based on the cost of the links that the traffic in the bundle is traversing. Although providers have already…
Cloud computing can be defined as the outsourcing / renting of resources over the network. It has been regarded as an essential utility similar to electricity, water, telephone and sewerage utilities. Over the years, a number of providers…
In many search markets, advance interim contracts include an explicit right to renege, granting one party the option to switch to more attractive matches that emerge later in the search process. This paper studies the design and welfare…
This paper analyzes the pricing of transit traffic in wireless peer-to-peer networks using the concepts of direct and indirect network externalities. We first establish that without any pricing mechanism, congestion externalities overwhelm…
The exploration of existing commercial opportunities has been increasing the share of commercial (non-aeronautical) revenues in the total revenues of airports worldwide. These revenues, also called commercial, non-aeronautical, or…
The airline industry was severely hit by the COVID-19 crisis with an average demand decrease of about $64\%$ (IATA, April 2020) which triggered already several bankruptcies of airline companies all over the world. While the robustness of…
Do low corporate taxes always favor multinational production over economic integration? We propose a two-country model in which multinationals choose the locations of production plants and foreign distribution affiliates and shift profits…
Motivated by the emergence of popular service-based two-sided markets where sellers can serve multiple buyers at the same time, we formulate and study the {\em two-sided cost sharing} problem. In two-sided cost sharing, sellers incur…
We consider the problem of designing prices for public transport where payment enforcing is done through random inspection of passengers' tickets as opposed to physically blocking their access. Passengers are fully strategic such that they…
We study the equilibrium behavior in a multi-commodity selfish routing game with many types of uncertain users where each user over- or under-estimates their congestion costs by a multiplicative factor. Surprisingly, we find that…
Models of spatial firm competition assume that customers are distributed in space and transportation costs are associated with their purchases of products from a small number of firms that are also placed at definite locations. It has been…
This paper analyzes two pricing schemes commonly used in WiFi markets: the flat-rate and the usage-based pricing. The flat-rate pricing encourages the maximum usage, while the usage-based pricing can flexibly attract more users especially…
Inspired by studies on airline networks we propose a general model for weighted networks in which topological growth and weight dynamics are both determined by cost adversarial mechanism. Since transportation networks are designed and…
This paper proposes a theory of pricing premised upon the assumptions that customers dislike unfair prices---those marked up steeply over cost---and that firms take these concerns into account when setting prices. Since they do not observe…
The two somewhat conflicting requirements of efficiency and fairness make ATFM an unsatisfactorily solved problem, despite its overwhelming importance. In this paper, we present an economics motivated solution that is based on the notion of…