Market share The market share of airline a in market m is the sum of osi i(m)over all itineraries iin market m The market share of the competitors of airline a in market m is 1-(the sum of Olim over all itineraries iin market m) Denote this as mscm 2/212021 Barnhart 1.206J/16.77J/ESD. 15J
2/21/2021 Barnhart 1.206J/16.77J/ESD.215J 11 Market Share • The market share of airline a in market m is the sum of QSIi(m) a over all itineraries i in market m • The market share of the competitors of airline a in market m is 1 – (the sum of QSIi(m) a over all itineraries i in market m) – Denote this as mscm a
Recapture onsider a passenger who desires itinerary I but is redirected(spilled) to itinerary The passenger has the choice of accepting or not(going to a competitor) Probability that passenger will accept/(given an uniform distribution) is the ratio of 2Slym) to QSIjm)+mSm?) Probability that passenger will NOT accept)(given an uniform distribution) is the ratio of mscm to QSTIm+ msc The ratios sum to 1 If a is a monopoly, recapture rate will equal 1.0 2/212021 Barnhart 1.206J/16.77J/ESD. 15J
2/21/2021 Barnhart 1.206J/16.77J/ESD.215J 12 Recapture • Consider a passenger who desires itinerary I but is redirected (spilled) to itinerary J – The passenger has the choice of accepting J or not (going to a competitor) – Probability that passenger will accept J (given an uniform distribution) is the ratio of QSIJ(m) a to (QSIJ(m) a + mscm a ) • Probability that passenger will NOT accept J (given an uniform distribution) is the ratio of mscm a to (QSIJ(m) a + mscm a ) – The ratios sum to 1 – If a is a monopoly, recapture rate will equal 1.0