The mechanics of frequent flyer discount coin

It is an automated web site.

The websit measures the distribution of airline gate prices, issues the discount coin via exchanges with the most common currencies.The matching error function is biased up or down as to match, in significance,  the most common gate price. It looks like a multi-color pit, but it is not, there is no cartel group with more frequent looks at the tradebook.

But the airlines could adopt a formal three color,and name themselves as the cartel. It works because the do profit accounting relative to discount coin, it becomes a profit and loss center for them.  But, that is OK, the coin is meant to purchase their product. The three color formalizes an inside information structure, the class having more. It is like a law of economics, sort of our second law. The first law being we don't like to wait in line.  The second being the law of cartels,  Cartels form when their inside information forms a complete sequence, relative to the original.  The system was 'aliased'.

Generator theory and cartel

The two color fair pit creates an exact match, within the amount of round off error the pit boss is willing to carry.  The resulting generator  generates typic sequences, but an isonormal subset of paths through the generator can be mutually coherent, and extracted, keeping inear algebra over the nodes and links. Like a rail road cartel applying the squeeze to the  oil industry. he rail cartel forces the industry to account for a monopoly fee.

Cartels are good when the cartel in question knows the business better, as a group. That would be a cartel of hotel owners creating the acapulco discount coin.