Posts Tagged ‘Hotelling Model’
How does the Hotelling model predict airline firms will behave?
Written by MichaelZ on November 27, 2008 – 6:24 am -
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.
Tags: Airlines, Hotelling Model, Price CompetitionAirlines 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.
Aileen
Posted in Air Travel | 1 Comment »