How does the Hotelling model predict airline firms will behave?
Airline Tickets
Ahmaendah asked:
Airlines are forced to locate very close to each other both physically, at the airport and relative to consumers online. Assuming that price competition is intense in the airline industry.
Airlines are forced to locate very close to each other both physically, at the airport and relative to consumers online. Assuming that price competition is intense in the airline industry.
How does the Hotelling model predict airline firms will behave?
I think they will appeal to the consumers by providing incentatives such as food and nonstop flights.
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February 24th, 2009 at 10:34 pm
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sorry i use the Hotelling resource extraction model, I don’t think that applies here