Airlines’ competition in aircraft size and service frequency in duopoly markets

Wei, Wenbin; Hansen, Mark

doi:10.1016/j.tre.2006.01.002

Cited by 61 publications

(36 citation statements)

References 7 publications

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“…Computational studies such as Hansen (1990), Wei and Hansen (2007), Dobson and Lederer (1993), Adler (2001Adler ( , 2005 etc. employ mathematical models and solution algorithms for obtaining Nash equilibria of airline competition games.…”

Section: Literature Reviewmentioning

confidence: 99%

“…The idea of modeling the frequency competition as an extensive form game was proposed by Wei and Hansen (2007) where, for contractual or historical reasons, one airline has the privilege of moving first, i.e., deciding the frequency on a segment. The other airline responds upon observing the action by the first player.…”

Section: Model Extension 2: Market Entry Deterrencementioning

confidence: 99%

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Modeling Airline Frequency Competition for Airport Congestion Mitigation

Vaze

Barnhart

2012

Transportation Science

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Demand often exceeds capacity at the congested airports. Airline frequency competition is partially responsible for the growing demand for airport resources. We propose a game-theoretic model for airline frequency competition under slot constraints. The model is solved to obtain a Nash equilibrium using a successive optimizations approach, wherein individual optimizations are performed using a dynamic programming-based technique. The model predictions are validated against actual frequency data, with the results indicating a close fit to reality. We use the model to evaluate different strategic slot allocation schemes from the perspectives of the airlines and the passengers. The most significant result of this research shows that a small reduction in the total number of allocated slots translates into a substantial reduction in flight and passenger delays, and also a considerable improvement in airlines' profits.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Model Extension 2: Market Entry Deterrencementioning

confidence: 99%

Modeling Airline Frequency Competition for Airport Congestion Mitigation

Vaze

Barnhart

2012

Transportation Science

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“…In fact, our empirical application is closely related to the studies by Pai (2007) and Wei and Hansen (2007). Pai (2007) estimates the determinants of ‡ight frequency in the US airline market, observing a decreasing relationship between frequency and distance.…”

Section: Transportation Options In ‡Uence Carriers'frequency Choicesmentioning

confidence: 86%

“…Pai (2007) estimates the determinants of ‡ight frequency in the US airline market, observing a decreasing relationship between frequency and distance. From a di¤erent perspective, Wei and Hansen (2007) develop an application for three game-theoretic models of airline choices, obtaining that frequency on long-haul routes is less than on short-haul routes. These …ndings are in line with our results when driving is a dominated option.…”

Section: Transportation Options In ‡Uence Carriers'frequency Choicesmentioning

confidence: 99%

Scheduled Service Versus Personal Transportation: The Role of Distance

Bilotkach¹,

Fageda

Flores-Fillol

2008

SSRN Journal

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This paper presents a theoretical and empirical analysis of the relationship between frequency of scheduled transportation services and their substitutability with personal transportation (using distance as a proxy). We study the interaction between a monopoly …rm providing a high-speed scheduled service and private transportation (i.e., car). Interestingly, the carrier chooses to increase the frequency of service on longer routes when competing with personal transportation because by providing higher frequency (at extra cost) it can also charge higher fares which can boost its pro…ts.However, in line with the results of earlier studies, frequency decreases for longer ‡ights when driving is not a viable option. An empirical application of our analysis to the European airline industry con…rms the predictions of our theoretical model.

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“…Passengers As determined by Wei and Hansen, 25,26 one of the product attributes favored by the passengers is the number of flights offered. The passenger demand D D i,r for airline i's service on route r is assumed to be given by,…”

mentioning

confidence: 99%

Environmental Impact Evaluation Using an Agent-Based Simulation Framework

Schroijen

Tooren

2010

10th AIAA Aviation Technology, Integration, and Operations (ATIO) Conference

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Environmental issues play an increasingly important role in aviation, affecting the desirability of novel technologies directly. The desirability of a certain technology with respect to environmental issues is determined by the system of systems level impact instead of the often used system level impact. Changing this perspective introduces additional complexities in how the system level evaluation should be related to the desired system of systems (SoS) level evaluation. A framework is proposed, using agent based simulation, to evaluate the emergent behaviour of the intertwined stakeholders and the subsequent impact of the novel technology. The Maglev assisted aircraft launch system is considered as a test case to evaluate the complexities arising in the proposed approach. The three evaluated scenarios showed a large behavioural effect on the system of systems level environmental impact. Even though data in the scenarios were assumed and behaviour simplified, the knowledge obtained by the agent based simulation improved the understanding of the mechanisms affecting the environmental impact. Finally, the modular approach allows for an extension of the framework to evaluate more realistic scenarios.

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Airlines’ competition in aircraft size and service frequency in duopoly markets

Cited by 61 publications

References 7 publications

Modeling Airline Frequency Competition for Airport Congestion Mitigation

Modeling Airline Frequency Competition for Airport Congestion Mitigation

Scheduled Service Versus Personal Transportation: The Role of Distance

Environmental Impact Evaluation Using an Agent-Based Simulation Framework

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