This paper develops a theoretical model for the optimal design of airfare as options under capacity constraint to study the price dispersion in U.S airline industry. Monopoly seller uses a menu of refund contracts to sequentially screen heterogeneous travelers who purchase the tickets before...

Mathematical programming models for airline seat inventory control provide booking limits and bid-prices for all itineraries and fare classes. E.L. Williamson [Airline network seat inventory control: methodologies and revenue impacts, Ph.D. thesis, Massachusetts Institute of Technology,...