Dynamic Pricing of Airline Tickets in Competitive Markets

The benefits of dynamic pricing methods have long been known in airline tickets. To date, many dynamic pricing models have not modeled competition explicitly. This paper provided a foundation game-theoretic model to describe a competitive problem and predicts the dynamic pricing behaviour of the two flights. We show that the pure-strategy Nash equilibrium when the selling period began is the lowest price. Finally, We propose the open loop control, which can make the various computationally feasible heuristic approaches for the multidimensional pricing problem.