Airline data have shown that the fraction of customers who choose the cheapest available fare class often is much greater than that predicted by the multinomial logit (MNL) choice model calibrated with the data. For example, the fraction of customers who choose the cheapest available fare class...

Investors' forecasting behavior affects their trading decisions and the resulting asset prices. It has been shown in the literature how different, apparently reasonable investor forecasting behaviors can lead to qualitatively different asset price trajectories. For example, investors' confidence...

This paper describes a revenue management problem of a major airline that operates in a very competitive market involving two major hubs and having more than 30 parallel daily flights. We consider choice based stochastic assortment optimization problems to maximize the expected revenue for the...

Many carriers, such as airlines and ocean carriers, collaborate through the formation of alliances. The rules of alliances are important for both the stability of the alliance and the profitability of the alliance members. In this paper, we address the design of resource exchange alliances, a...

Models for decision-making under uncertainty use probability distributions to represent variables whose values are unknown when the decisions are to be made. Often the distributions are estimated with observed data. Sometimes these variables depend on the decisions but the dependence is ignored...

Models for decision-making under uncertainty use probability distributions to represent variables whose values are unknown when the decisions are to be made. Often the distributions are estimated with observed data. Sometimes these variables depend on the decisions but the dependence is ignored...

The fraction of customers who choose a particular item from among a set of available items can be increased significantly by the inclusion of a related inferior (and apparently irrelevant) item in the choice set. This violation of the independence from irrelevant alternatives and the regularity...