Airline Alliance Transfer Price Bargaining Strategy
Members of marketing airline alliance on one hand cooperatively booking seats from the operating airline, and on the other hand compete with each other in the market. Two types of bargaining process including representative based and agent based cooperative bargaining are respectively modeled and discussed. Internal negotiation mechanism inside marketing airline alliance is also considered in representative based bargaining. This paper develops a cooperative bargaining approach to analyze the effects of marketing airlines merger in code share agreement with operating airline, the performance of two sub strategies under representative based bargaining are compared with non-cooperative case. Concluding that representative based bargaining without internal negotiation could make the competition degree more intense while representative-based bargaining with internal negotiation has the opposite effect. Cooperative bargaining with internal negotiation could always makes the marketing airlines and operating airline benefit more, while representative based bargaining without internal negotiation may result in total profit loss
Year of publication: |
2023
|
---|---|
Authors: | Teng, Lan |
Publisher: |
[S.l.] : SSRN |
Subject: | Verrechnungspreis | Transfer pricing | Fluggesellschaft | Airline | Strategische Allianz | Strategic alliance | Verhandlungstheorie | Bargaining theory | Luftverkehr | Air transport | Multinationales Unternehmen | Transnational corporation | Verhandlungen | Negotiations |
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