Revenue Management Games: Horizontal and Vertical Competition

  title={Revenue Management Games: Horizontal and Vertical Competition},
  author={Serguei Netessine and Robert A. Shumsky},
  journal={Management Science},
A well-studied problem in the literature on airline revenue (or yield) management is the optimal allocation of seat inventory among fare classes given a demand distribution for each class. In practice, the seat allocation decisions of one airline affect the passenger demands for seats on other airlines. In this paper we examine the seat inventory control problem under both horizontal competition (two airlines compete for passengers on the same flight leg) and vertical competition (different… CONTINUE READING
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