Related papers: Multimarket Contact, Merger, and Airline Collusion
This study aims to discuss the impacts of a low-cost airline on the air transport market and, especially, to present the most recent findings from specialized literature in the field. To this end, various works on this topic, published…
We address the challenging problem of dynamically pricing complementary items that are sequentially displayed to customers. An illustrative example is the online sale of flight tickets, where customers navigate through multiple web pages.…
The threat of algorithmic collusion, and whether it merits regulatory intervention, remains debated, as existing evaluations of its emergence often rely on long learning horizons, assumptions about counterparty rationality in adopting…
We study whether simple algorithmic pricing systems can systematically produce collusive-like prices in multi-firm markets. We consider firms using an explore-then-exploit pipeline: they randomize prices during an initial exploration phase,…
While multimodal mobility systems have the potential to bring many benefits to travelers, drivers, the environment, and traffic congestion, such systems typically involve multiple non-cooperative decision-makers who may selfishly optimize…
This working paper is divided into two parts. Firstly, we develop a new combined equilibrium model of business land-use, which puts travelers' traffic equilibrium and business companies' competitive location equilibrium into a unified…
Mobile Collaborative Internet Access (MCA) enables mobile users to share their Internet through flexible tethering arrangements. This can potentially make better use of network resources. However, from a mobile network operator's (MNO's)…
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,…
While consolidation strategies form the backbone of many supply chain optimisation problems, exploitation of multi-tier material relationships through consolidation remains an understudied area, despite being a prominent feature of…
We study the propensity of independent algorithms to collude in repeated Cournot duopoly games. Specifically, we investigate the predictive power of different oligopoly and bargaining solutions regarding the effect of asymmetry between…
We examine how monetary shocks spread throughout an economic model characterized by sticky prices and general equilibrium, where the pricing strategies of firms are interlinked, fostering a mutually beneficial relationship. In this dynamic…
Algorithmic agents are used in a variety of competitive decision-making settings, including pricing contexts that range from online retail to residential home rental. We study the emergence of algorithmic collusion when competing agents…
The modernization of an airline's fleet can reduce its operating costs, improve the perceived quality of service offered to passengers, and mitigate emissions. The present paper investigates the market incentives that airlines have to adopt…
The aviation industry has experienced constant growth in air traffic since the deregulation of the U.S. airline industry in 1978. As a result, flight delays have become a major concern for airlines and passengers, leading to significant…
Reliable platforms for data collation during airline schedule operations have significantly increased the quality and quantity of available information for effectively managing airline schedule disruptions. To that effect, this paper…
We have collected and analysed prices for more than 1.4 million flight tickets involving 63 destinations and 125 airlines and have found that common sense violation i.e., discrepancies between what consumers would expect and what truly…
This paper develops a dynamic equilibrium model of the insurance market that jointly characterizes insurers' underwriting, investment, recapitalization, and dividend policies under model uncertainty and financial frictions. Competitive…
We investigate the optimal execution of contracts that are used in merger\&acquisition deals. We consider cash-settled and physically delivered contracts between a broker and a counterpart. Contracts are linear (total returns swaps),…
LLM agents in markets present algorithmic collusion risks. While prior work shows LLM agents reach supracompetitive prices through tacit coordination, existing research focuses on hand-crafted prompts. The emerging paradigm of prompt…
This paper examines how data inputs shape competition among artificial intelligences (AIs) in pricing games. The dataset assigns labels to consumers and divides them into different markets, thereby inducing multimarket contact among AIs. We…