Dynamic airline pricing model based on game theory
1.College of Civil Aviation, Nanjing University of Aeronautics and Astronautics, Nanjing, Jiangsu 210016, China; 2.College of Air Traffic Management, Civil Aviation University of China, Tianjin 300300, China
Abstract：The both sides of game behavior of airline and passengers are influenced by air fare. The dynamic game behavior between airline and passengers was analyzed to discuss the trip cost of passengers. The game problem in entire presale stage was transferred to the oneperson game problem of airline with considerations of NoShow and passenger influence on airline earning. According to the rule in economics theory of price influencing market demands, the sale of the air tickets was regulated with the pricing decision to realize overbooking limit. The overbooking factor was included in the proposed dynamic pricing model. The practicability of the model was verified by example simulation.
2013, Vol. 34 
