Abstract
This paper presents the application of 2-level problem in network industry market. The relationship of players in the market can be regarded as the gaming equilibrium of 2-level problem between the upper class as suppliers and lower class as the customers or passengers. In this research, the characteristic of the market is discussed, and specifically the practical model to evaluate policy scenarios in domestic air passengers flow market is formulated. As the formulation is expressed as optimization problems, strict convergence solutions and genetic algorithms are adopted. The former is the program design following formula faithfully. The latter is to rapidly obtain the approximate solution as the heuristic solution.
