Article ID: | iaor1990992 |
Country: | United States |
Volume: | 24 |
Issue: | 3 |
Start Page Number: | 183 |
End Page Number: | 192 |
Publication Date: | Aug 1990 |
Journal: | Transportation Science |
Authors: | Brumelle S.L., McGill J.I., Oum T.H., Sawaki K., Tretheway M.W. |
This paper examines the problem of allocating airline seats between two nested fare classes when the demands for the classes are stochastically dependent. The well known simple seat allotment formula of Littlewood which requires the assumption of statistical independence between demands is generalized to a formula which requires only a much weaker monotonic association assumption. The model employed here is also used to examine the problems of full fare passenger spillage and passenger upgrades from the discount class.