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The network choice revenue management problem models customers as choosing from an offer-set, and the firm decides the best subset to offer at any given moment to maximize expected revenue. The resulting dynamic program for the firm is intractable and approximated by a deterministic linear...
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Models incorporating more realistic models of customer behavior, as customers choosing from an offer set, have recently become popular in assortment optimization and revenue management. The dynamic program for these models is intractable and approximated by a deterministic linear program called...
Persistent link: https://www.econbiz.de/10008633166
computationally intractable because of an exponentially large state space, and a number of heuristics have been proposed to …
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exact solution is computationally intractable. Consequently, a number of heuristics have been proposed in the literature …
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US by 67 percent and 30 percent, respectively. We suggest two simple dynamic heuristic heuristics that continuously … problem. We show through a numerical study that the revenue impact of using these dynamic pricing heuristics rather than fixed … pricing heuristics persist under a periodic setting. This is especially true for the revenue approximation heuristic for which …
Persistent link: https://www.econbiz.de/10013036758
Recently, the standard dynamic programming model of network revenue management has been extended for integrated upgrade decision-making. However, opposed to the original model, heuristically breaking the extended model down into a series of single-leg problems by dynamic programming...
Persistent link: https://www.econbiz.de/10013035570
Opaque products enable service providers to hide specific characteristics of their service fulfillment from the customer until after purchase. Prominent examples include internet-based service providers selling airline tickets without defining details, such as departure time or operating...
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