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The ability to effectively match supply and demand can lead to significant revenue benefits in theairline industry. Airline supply management deals with assigning the rightresources (i.e., aircraft and crew) to the right routes in the flight network.Due to certain crew regulations, operating...
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We consider a monopolist producing two substitutable products with one flexible (shared) capacity. The demand of each product is a linear function of the prices of both products, and is subject to an additive shock. We study the impact of two key drivers, namely the degree of substitution...
Persistent link: https://www.econbiz.de/10008865306
We provide a comprehensive characterization of the relationship between optimal capacity and the degree of product substitution/complementarity under price/production postponement, considering different business practices (holdback versus clearance, negative price policies) and different demand...
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