How does the Hotelling model predict airline firms will behave?
Airlines
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.
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.
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.
Caffeinated Content for WordPress
November 13th, 2008 at 11:41 pm
sorry i use the Hotelling resource extraction model, I don’t think that applies here