Please use this identifier to cite or link to this item: https://gnanaganga.inflibnet.ac.in:8443/jspui/handle/123456789/14398
Title: A Model of Airline Pricing- Capacity Constraints and Deadlines
Authors: Shubhro Sarkar
Keywords: Dynamic pricing
capacity constraints
time-sensitive goods
subgame perfection
Issue Date: 2007
Publisher: Journal of Quantitative Economics
Abstract: We study monopolistic pricing, with a capacity constraint, of a good that loses its value after three periods. In each period a continuum of buyers, each of whom might be one of two types, enter. Each of the buyers chooses either to make a purchase as soon as they enter, or to wait for a lower price. The price path is found to be strictly non-decreasing, u-shaped or horizontal for different proportions of buyers with a higher willingness to pay. Any strategy involving 'final sales' is non-optimal. The predictions are empirically tested.
URI: http://gnanaganga.inflibnet.ac.in:8080/jspui/handle/123456789/14398
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