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author:

Jiang, Binqian (Jiang, Binqian.) [1] | Li, Dengfeng (Li, Dengfeng.) [2]

Indexed by:

EI PKU CSCD

Abstract:

The code sharing is the popular and effective cooperation of the airlines. First, this paper applies the spokes model to describe the different preferences of passengers for three airlines, and proposes the twostage game model and the simple method for the code sharing agreement choosing stage and the tickets' pricing stage under the free-sale model. Second, we use the numerical example to show the feasibility of the proposed models and method. By comparison and analysis, the Nash equilibrium situations of the two-stage game can be obtained. This study demonstrates: The code sharing agreement saves the total operating cost, but it raises the average airfare of the aviation market, so that the airlines' profits increase and the passengers' surpluses decrease; the government should promote the realization of better Nash equilibrium situation in order to maximize the total social welfare; to further improve the total social welfare during the period of Corona Virus Disease-19, the government could give the airlines some cost subsidies or adjust the passengers' psychological costs. Therefore, this paper provides significant theoretical and methodical supports to optimize the choices of the code sharing agreements and to improve the total social welfare in the aviation market. © 2022, Editorial Board of Journal of Systems Engineering Society of China. All right reserved.

Keyword:

Air transportation Codes (symbols) Commerce Computation theory Costs Game theory Numerical methods Viruses

Community:

  • [ 1 ] [Jiang, Binqian]School of Economics and Management, Fuzhou University, Fuzhou; 350108, China
  • [ 2 ] [Li, Dengfeng]School of Management and Economics, University of Electronic Science and Technology of China, Chengdu; 611731, China

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Source :

System Engineering Theory and Practice

ISSN: 1000-6788

CN: 11-2267/N

Year: 2022

Issue: 3

Volume: 42

Page: 724-737

Cited Count:

WoS CC Cited Count:

SCOPUS Cited Count: 2

ESI Highly Cited Papers on the List: 0 Unfold All

WanFang Cited Count:

Chinese Cited Count:

30 Days PV: 0

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