Related papers: Common Subcontracting and Airline Prices
The conventional practice of retail electric utilities is to aggregate customers geographically. The utility purchases electricity for its customers via bulk transactions on the wholesale market, and it passes these costs along to its…
In a ride-pooling system, travellers experience discomfort associated with a detour and a longer travel time, which is compensated with a sharing discount. Most studies assume travellers receive either a flat discount or, in rare cases, a…
Maritime shipping is a backbone of international trade and, thus, the world economy. Cargo-loaded vessels travel from one country's port to another via an underlying port-to-port transport network, contributing to international trade values…
We study how market segmentation affects consumers when a monopolist can adjust both prices and product qualities across segments, engaging in second- and third-degree price discrimination simultaneously. We characterize the…
Whenever customers' choices (e.g. to buy or not a given good) depend on others choices (cases coined 'positive externalities' or 'bandwagon effect' in the economic literature), the demand may be multiply valued: for a same posted price,…
Besides air pollution and commuter stress, traffic congestions also lead to loss of productivity, increase in delay, vehicle operating cost, and accidents. To assuage these issues, several logistics companies are planning to launch air…
Walrasian equilibrium prices can be said to coordinate markets: They support a welfare optimal allocation in which each buyer is buying bundle of goods that is individually most preferred. However, this clean story has two caveats. First,…
The rise in urbanization throughout the United States (US) in recent years has required urban planners and transportation engineers to have greater consideration for the transportation services available to residents of a metropolitan…
We consider a seller who offers services to a buyer with multi-unit demand. Prior to the realization of demand, the buyer receives a noisy signal of their future demand, and the seller can design contracts based on the reported value of…
A statistical analysis is performed for a random unrestricted local crew scheduling problem, expressed in terms of pairing arrivals with departures. The analysis is aimed at understanding the structure of similar problems with global…
Congestion pricing has received lots of attention in scientific discussion. Congestion pricing means that the operator increases prices at the time of congestion and the traffic demand are expected to decrease. In a certain sense, shadow…
We modify the standard model of price competition with horizontally differentiated products, imperfect information, and search frictions by allowing consumers to flexibly acquire information about a product's match value during their…
I present and discuss a model for the free-for-all passenger boarding which is employed by some discount air carriers. The model is based on the principles of statistical mechanics where each seat in the aircraft has an associated energy…
When online sellers use AI learning algorithms to automatically compete on e-commerce platforms, there is concern that they will learn to coordinate on higher than competitive prices. However, this concern was primarily raised in…
Cloud computing changed the way of computing as utility services offered through public network. Selecting multiple providers for various computational requirements improves performance and minimizes cost of cloud services than choosing a…
To successfully complete a complex project, be it a construction of an airport or of a backbone IT system, agents (companies or individuals) must form a team having required competences and resources. A team can be formed either by the…
With the rapid development of economy and the accelerated globalization process, the aviation industry plays more and more critical role in today's world, in both developed and developing countries. As the infrastructure of aviation…
Estimating market impact and transaction costs of large trades (metaorders) is a very important topic in finance. However, using models of price and trade based on public market data provide average price trajectories which are…
This paper investigates the impacts of competition in autonomous mobility-on-demand systems. By adopting a network-flow based formulation, we first determine the optimal strategies of profit-maximizing platform operators in monopoly and…
The air transportation network, a fundamental component of critical infrastructure, is formed from a collection of individual air carriers, each one with a methodically designed and engineered network structure. We analyze the individual…