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For the base model, in which we ignore the two complicating phenomena -the buy-up and the no-show behaviors- mentioned in the case, use the critical
For the base model, in which we ignore the two complicating phenomena -the buy-up and the no-show behaviors- mentioned in the case, use the "critical fractile" approach we have discussed in class to find the optimal protection level for the full-fare seats to maximize expected profit. Also report the optimal booking limit for low-fare seats
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International Economics
Authors: Dominick Salvatore
11th edition
978-1118177938, 1118177932, 1119915732, 978-1118476017, 1118476018, 978-1119915737
