Fair Revenue Sharing Mechanisms for Strategic Passenger Airline Alliances

1. Front Matter

   Pages i-xv

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2. Introduction

   • Demet Çetiner

   Pages 1-2

3. Selected Topics in Revenue Management

   • Demet Çetiner

   Pages 3-30

4. A Review of Strategic Passenger Airline Alliances

   • Demet Çetiner

   Pages 31-41

5. Selected Topics in Cooperative Game Theory

   • Demet Çetiner

   Pages 43-72

6. Airline Alliance Revenue Management Game

   • Demet Çetiner

   Pages 73-82

7. Approximate Nucleolus-Based Revenue Shares for Airline Alliances

   • Demet Çetiner

   Pages 83-109

8. Selfish Revenue Sharing Mechanisms for Airline Alliances

   • Demet Çetiner

   Pages 111-132

9. A Revenue Sharing Mechanism Based on the Transfer of Dual Prices

   • Demet Çetiner

   Pages 133-157

10. Conclusions and Future Research

    • Demet Çetiner

    Pages 159-161

11. Back Matter

    Pages 163-168

    PDF

​A major problem arising in airline alliances is to design allocation mechanisms determining how the revenue of a product should be shared among the airlines. The nucleolus is a concept of cooperative game theory that provides solutions for allocating the cost or benefit of a cooperation. This work provides fair revenue proportions for the airline alliances based on the nucleolus, which assumes a centralized decision making system. The proposed mechanism is used as a benchmark to evaluate the fairness of the revenue sharing mechanisms, where the alliance partners behave selfishly. Additionally, a new selfish revenue allocation rule is developed that improves the performance of the existing methods.

• Airline Alliance
• Fairness
• Game Theory
• Revenue Management
• Revenue Sharing

From the book reviews:

“The book has nine chapters. … the book is well-written, self-contained, and would be of interest to academics working in this area. … it brings together the theoretical (centralized) allocation approach with the heuristics for the decentralized case … .” (Arne K. Strauss, Interfaces, Vol. 44 (5), September–October, 2014)

• Düsseldorf, Germany

  Demet Çetiner

Demet Çetiner worked as research assistant at the University of
Duisburg-Essen, Germany from 2008-2012. Since 2012 she has worked at the Supply Chain Consulting department of Bayer Technology Services.

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