rrom trie relevant airline tare and seat management literature tnis paper conceptualizes four strategies which airlines use. They are the large fare discount-few discount seats, large fare discount-many discount seats, small fare discount-few discount seats and small fare discount-many discount seats. Using a constrained revenue maximization model that assumes interdependent demand, it develops rules to guide decision-making, and shows that the large fare discount-many discount seats and small fare discount-few discount seats strategies are optimal. In the empirical section the paper provides support for the large fare discount-many discount seats strategy but not the others, and identifies three other strategies not found in the literature. They are no fare discount or premium-
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