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RE: bonus miles case


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- Law and Economics



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by Kirstein on 01 Feb. 2010 19:55

Oh my, I still have to write the paper on that case >sigh<

Anyway, here‘s my answer: The only thing I had in mind was the additional ticket price that airline A charges, in excess to the price asked by airline B, if A offers a bonus program while B doesn‘t.

This might be justified by the fact that many firms (just as public sevice) impose some limitation on their employees‘ trips (business instead of first class; in public service it would rather be the wood bench in the strage room).

In any case your question proposes a nice amendment to the original model (thanks for that): The problem might become more complex in the absence of such regulations, if the employee can even book a higher class (or a longer flight?) in order to obtain more bonus miles. However, my hunch is that such an amendment is not overly realistic.

All the best
RK

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Replies
  • bonus miles case (Kristin | 01 Feb. 2010 15:31)
    • RE: bonus miles case (Kirstein * | 01 Feb. 2010 19:55)




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