Capacity Allocation and Revenue Sharing in Airline Alliances: A Combinatorial Auction-Based Modeling
Joint Authors
Source
Mathematical Problems in Engineering
Issue
Vol. 2017, Issue 2017 (31 Dec. 2017), pp.1-7, 7 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2017-02-07
Country of Publication
Egypt
No. of Pages
7
Main Subjects
Abstract EN
This paper attempts to establish a framework to help airline alliances effectively allocate their seat capacity with the purpose of maximizing alliances’ revenue.
By assuming the airline alliance as the auctioneer and seat capacity in an itinerary as lots, the combinatorial auction model is constructed to optimize the allocation of the seat, and the revenue sharing method is established to share revenue between partners by Vickrey-Clarke-Groves (VCG) mechanism.
The result of the numerical study shows that the seat capacity allocation is effective even without information exchanging completely and the twofold revenue shares method shows more excitation for the airlines.
American Psychological Association (APA)
Gu, Ying-jing& Zhu, Jin-fu. 2017. Capacity Allocation and Revenue Sharing in Airline Alliances: A Combinatorial Auction-Based Modeling. Mathematical Problems in Engineering،Vol. 2017, no. 2017, pp.1-7.
https://search.emarefa.net/detail/BIM-1190091
Modern Language Association (MLA)
Gu, Ying-jing& Zhu, Jin-fu. Capacity Allocation and Revenue Sharing in Airline Alliances: A Combinatorial Auction-Based Modeling. Mathematical Problems in Engineering No. 2017 (2017), pp.1-7.
https://search.emarefa.net/detail/BIM-1190091
American Medical Association (AMA)
Gu, Ying-jing& Zhu, Jin-fu. Capacity Allocation and Revenue Sharing in Airline Alliances: A Combinatorial Auction-Based Modeling. Mathematical Problems in Engineering. 2017. Vol. 2017, no. 2017, pp.1-7.
https://search.emarefa.net/detail/BIM-1190091
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1190091