Duopoly with Differentiated Demand and Capacity Constraints (B. Çelen & S. Feldmann)

We are adding a new competition game, by Bogaçhan Çelen and Sven Feldmann (Melbourne Business School).

Players are randomly and anonymously paired with another participant, and play 6 rounds of an airline duopoly game with capacity constraints and differentiated demand.

The airlines simultaneously choose capacity and prices with which they compete. The system of demand is linear and symmetric (model of demand).

airline-competition

The rules can be found here and and we also included a simulation “outside” of the game, to help players determine their best choice: simulation

The game is the last game in the list in the industrial organization section.

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