Abstract
To develop efficient pricing and service strategies for air cargo carriers, we formulated air cargo demand as a Multinomial Logit model to reveal forwarders' preferences toward freightage, flight frequency and service reliability. By applying non-cooperative game approach, we solve the market equilibrium to produce optimal freightage of priority and ordinary cargo for forwarders with various shipping volumes as well as the optimal flight schedules of air cargo carriers. In the case study, we found that the leader of air carriers would have not only the largest share, but also the highest freightage for both ordinary and priority cargo. And, with the provision of transfer flights, carriers could further reduce their operating cost by 1% to 3%.
| Original language | English |
|---|---|
| Pages (from-to) | 216-222 |
| Number of pages | 7 |
| Journal | Journal of Marine Science and Technology |
| Volume | 20 |
| Issue number | 2 |
| Publication status | Published - 2012 May 14 |
Fingerprint
All Science Journal Classification (ASJC) codes
- Oceanography
- Ocean Engineering
- Mechanics of Materials
- Mechanical Engineering
Cite this
}
Modeling pricing and scheduling strategies for air cargo carriers as non-cooperative games. / Shyr, Oliver Feng Yeu; Lee, Yuan Lu.
In: Journal of Marine Science and Technology, Vol. 20, No. 2, 14.05.2012, p. 216-222.Research output: Contribution to journal › Article
TY - JOUR
T1 - Modeling pricing and scheduling strategies for air cargo carriers as non-cooperative games
AU - Shyr, Oliver Feng Yeu
AU - Lee, Yuan Lu
PY - 2012/5/14
Y1 - 2012/5/14
N2 - To develop efficient pricing and service strategies for air cargo carriers, we formulated air cargo demand as a Multinomial Logit model to reveal forwarders' preferences toward freightage, flight frequency and service reliability. By applying non-cooperative game approach, we solve the market equilibrium to produce optimal freightage of priority and ordinary cargo for forwarders with various shipping volumes as well as the optimal flight schedules of air cargo carriers. In the case study, we found that the leader of air carriers would have not only the largest share, but also the highest freightage for both ordinary and priority cargo. And, with the provision of transfer flights, carriers could further reduce their operating cost by 1% to 3%.
AB - To develop efficient pricing and service strategies for air cargo carriers, we formulated air cargo demand as a Multinomial Logit model to reveal forwarders' preferences toward freightage, flight frequency and service reliability. By applying non-cooperative game approach, we solve the market equilibrium to produce optimal freightage of priority and ordinary cargo for forwarders with various shipping volumes as well as the optimal flight schedules of air cargo carriers. In the case study, we found that the leader of air carriers would have not only the largest share, but also the highest freightage for both ordinary and priority cargo. And, with the provision of transfer flights, carriers could further reduce their operating cost by 1% to 3%.
UR - http://www.scopus.com/inward/record.url?scp=84860719597&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84860719597&partnerID=8YFLogxK
M3 - Article
AN - SCOPUS:84860719597
VL - 20
SP - 216
EP - 222
JO - Journal of Marine Science and Technology
JF - Journal of Marine Science and Technology
SN - 1023-2796
IS - 2
ER -