Showing 1 - 6 of 6
In many industries, managers face the problem of selling a given stock of items by a deadline. We investigate the problem of dynamically pricing such inventories when demand is price sensitive and stochastic and the firm's objective is to maximize expected revenues. Examples that fit this...
Persistent link: https://www.econbiz.de/10009213994
We propose and analyze a heuristic that uses region partitioning and an aggregation scheme for customer attributes (load size, time windows, etc.) to create a finite number of customer types. A math program is solved based on these aggregated customer types to generate a feasible solution to the...
Persistent link: https://www.econbiz.de/10009214430
We analyze a dynamic auction, in which a seller with C units to sell faces a sequence of buyers separated into T time periods. Each group of buyers has independent, private values for a single unit. Buyers compete directly against each other within a period, as in a traditional auction, and...
Persistent link: https://www.econbiz.de/10009218445
Customer choice behavior, such as buy-up and buy-down, is an important phenomenon in a wide range of revenue management contexts. Yet most revenue management methodologies ignore this phenomenon---or at best approximate it in a heuristic way. In this paper, we provide an exact and quite general...
Persistent link: https://www.econbiz.de/10009204289
We investigate a simple adaptive approach to optimizing seat protection levels in airline revenue management systems. The approach uses only historical observations of the relative frequencies of certain seat-filling events to guide direct adjustments of the seat protection levels in accordance...
Persistent link: https://www.econbiz.de/10009208568
Bid-prices are becoming an increasingly popular method for controlling the sale of inventory in revenue management applications. In this form of control, threshold---or "bid"---prices are set for the resources or units of inventory (seats on flight legs, hotel rooms on specific dates, etc.) and...
Persistent link: https://www.econbiz.de/10009197653