Research On Dynamic Pricing Of Parallel Flights Considering Consumer's Bounded Rational Behavior

By analyzing the current situation of competition between Chinese airlines and the existing policies of civil aviation transportation pricing and the problems existing in the revenue management of airlines,this paper studies the dynamic pricing of parallel flights considering consumer bounded rationality.The meaning of the parallel flights is that two different operators provide a flight respectively,which have the same departure airport and destination airport,and have the same departure time,and use the same aircraft type.The results help route managers understand the significance of increasing the pricing level,and the impact of consumer bounded rational behavior on their market decisions in a competitive market environment,and enable them to adopt more effective marketing strategies.Firstly,this paper establishes the three-price parallel flights dynamic pricing model,which integrates the advantages of the existing traditional(assuming that the consumer is perfectly rational)parallel flights dynamic pricing model,and relaxes the limits of the number of given discrete price levels in the existing model,and optimizes the utility function of the original model.The properties of the new model are verified by numerical experiments.Under the same parameter setting,compared with the airline expected revenue with two price-level,the expected revenue of the airline with three price-level is greater.Secondly,on the basis of the newly established three-price parallel flights dynamic pricing model,this paper further relaxes the assumption that the consumers are completely rational in the model,and introduces the purchasing decision frame of inertia behavior in the bounded rational behavior of consumers,which built by Su(2009).This paper analyzes the influences of the inertia depth and inertia width on the expected revenue of each airline and the price level switching point by numerical experiments.It is assumed that the inert behavior of the consumer will impair the expected revenue of each airline and antedate the position of the price-level switching point.Finally,according to the influence of inertia behavior,this paper discusses the enlightenment to the airline revenue manager.