Non-Cooperative Game Theory in Measuring Strategic Interactions between Airline Joint-Venture Alliances

Purpose: The paper proposes a research method for measuring strategic interactions between airline joint-venture alliances that compete with each other. Design/Methodology/Approach: proposed is based on the non-cooperative game theory Nash-Cournot equilibrium. It consists in development of model compares economic performance long-haul, intercontinental operations two consecutive scenarios, before and after joining an alliance. Findings: A can be successfully logic Furthermore, effective tool analysing joint business agreements. Practical Implications: used bottom line long-haul agreements world-wide. For example, EU–US market, analysis following alliances: United Airlines – Lufthansa Group; American International Group Finnair; Delta Air Lines France KLM Virgin Atlantic. Originality/Value: This novel approach to advanced alliance strategies.