A well-studied problem in the literature on airline revenue (or yield) management is the optimal allocation of seat inventory among fare classes given a demand distribution for each class. In practice, the seat allocation decisions of one airline affect the passenger demands for seats on other...

We model a spot market in a make-to-stock industry with two types of suppliers: A type 1 supplier faces stochastic contracted demand and has access to the spot market for liquidating surplus, while a type 2 supplier produces only for the spot market. We find the production quantity equilibrium...