|
China Airlines, the flag carrier of Republic of China before 1995, may have to evaluate its belief that "We treasure each encounter," when it encouners EVA Air, which roared into the sky to become its major competitor after the deregulation of commercial aviation industry had been put into practice in 1988. What are their strategies to share this island market? What is the relation between maximized seats and payoff? How the benefits of passengers are affected by their discretion? Aiming at these questions, this research applies game theory to the seats they provide to carry out the bottom-up implementatin evaluation of deregulation. The Cournot model enables this study to discover "defection" is not the best choice for both of them. Frequently, only can of "capacity" and "superiority."
|