Author(s)

Linli Yao, Wenyu Bai

Corresponding Author

Linli Yao

ABSTRACT

Based on game theory and information economics, this paper establishes a game model of disputes between airlines and passengers with information asymmetry and studies its evolutionary stability strategy. The model can be used to predict and evaluate the status of the relationship between airlines and passengers, and to regulate the development of the relationship between airlines and passengers in a benign direction by adjusting the unit income cost and the degree of information asymmetry. The causes and processes of disputes between airlines and passengers are discussed, and policy suggestions are put forward to improve the relationship between airlines and passengers and to build the trust of airlines based on game theory.

KEYWORDS

Information asymmetry, evolutionary game, airline and passenger disputes