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An effect of consumer's earlier decision to purchase a discount ticket

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  • Ishii, Ryosuke
  • Nakagawa, Kuninori

Abstract

In this article, we consider how effect consumer's earlier decision to purchase a discount ticket will have on the competition, price and timetable, between airlines. We focus on a relationship between consumer's purchasing behavior and a competition between airlines. We consider that a consumer can purchase a ticket two times, i.e. ex-ante and ex-post, corresponding to this timing, airlines also can set their prices of tickets. The main conclusion highlighted by this article is that, in a subgame perfect equilibrium, each airline's expected profit is unique and timetable is socially optimal regardless to a consumer's purchasing behavior.

Suggested Citation

  • Ishii, Ryosuke & Nakagawa, Kuninori, 2011. "An effect of consumer's earlier decision to purchase a discount ticket," ビジネス創造センターディスカッション・ペーパー (Discussion papers of the Center for Business Creation) 10252/4502, Otaru University of Commerce.
    • Handle: RePEc:ota:busdis:10252/4502
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    References listed on IDEAS

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