Evolutionary game analysis of online travel agency and hotels' pricing strategy

Li Shan; Xu Lanjing; Yu Ying; Song Bo; Yao Yehui

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Evolutionary game analysis of online travel agency and hotels' pricing strategy

Li Shan *,Xu Lanjing,Yu Ying #,Song Bo,Yao Yehui

College of Economic and Management,Nanjing University of Aeronautics and Astronautics, Nanjing 210016

*Correspondence author

#Submitted by

Subject:

Funding: Research Fund for the Doctoral Program of Higher Education of China （No.20123218120034）, Fundamental Research Funds for the Central Universities （No.NS2013083）, Jiangsu Province Natural Science Foundation （No.BK2012385）

Opened online:27 May 2016

Accepted by: none

Citation: Li Shan,Xu Lanjing,Yu Ying.Evolutionary game analysis of online travel agency and hotels' pricing strategy[OL]. [27 May 2016] http://en.paper.edu.cn/en_releasepaper/content/4691889

This paper built a local tourism supply chain by taking the accommodation services for example based on the present situation of the online travel industry, and described the co-opetition relationship between online travel agency and hotels in detail. In order to explore the coordination mechanism considering longitudinal and horizontal co-opetition relationship between online travel agency and hotels, two basic models for the longitudinal competition and cooperation relationship were first built. Then, by adding horizontal competition between hotels, we established the evolutionary game, and discussed the ESS in different situations. At last, we provided a numerical analysis to illustrate the validity and effectiveness of the model, and made some suggestions for online travel agency according to the result.

Keywords:online travel agency, hotel, pricing strategy, evolutionary game theory

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