Competitive Pricing Strategies of Low Cost Airlines in the Perspective of Game theory

Poh, Lim Seng and Mohd Ghazali Mohayidin, (2011) Competitive Pricing Strategies of Low Cost Airlines in the Perspective of Game theory. International Proceedings of Economics Development & Research, 10. pp. 490-494.

Full text not available from this repository.


Price is the weapon of choice for many low cost airlines in the competition for market share. Regional low cost airlines' pricing strategy for market stimulation is issuing free tickets and competing in ticket prices setting. It has been assumed as an effective strategy in influencing customers' purchasing decision. This study has documented the differences in price setting dynamics across low cost airlines operating on one of the biggest regional market and six domestic routes. A total sample of 7883 fare quotes for nonstop travel from Kuala Lumpur to Singapore and 6 domestic routes have been examined. The employment of Granger Causality Test attempts to mathematically capture the competitive behaviour in price setting. The data evidence revealed the reality of price competitiveness among the low cost airlines and game theory suggests that price cooperative should be implemented by low cost airlines for long term sustainability. [ABSTRACT FROM AUTHOR]

Item Type: Article
Additional Information: This article is available in OUM Digital Library Online Database.
Uncontrolled Keywords: Pricing Strategies, Game theory
Divisions: Centre for Graduate Studies
Depositing User: Shahril Effendi Ibrahim
Date Deposited: 06 Sep 2013 03:15
Last Modified: 06 Sep 2013 03:15

Actions (login required)

View Item View Item