A heuristic approach to product design
Management Science
Hyperbolic 0-1 programming and query optimization in information retrieval
Mathematical Programming: Series A and B
Optimizing multinomial logit profit functions
Management Science
Computers and Intractability: A Guide to the Theory of NP-Completeness
Computers and Intractability: A Guide to the Theory of NP-Completeness
Revenue Management for Parallel Flights with Customer-Choice Behavior
Operations Research
On the Choice-Based Linear Programming Model for Network Revenue Management
Manufacturing & Service Operations Management
Computing Virtual Nesting Controls for Network Revenue Management Under Customer Choice Behavior
Manufacturing & Service Operations Management
On complexity of unconstrained hyperbolic 0-1 programming problems
Operations Research Letters
OM Practice---Choice-Based Revenue Management: An Empirical Study of Estimation and Optimization
Manufacturing & Service Operations Management
A Dynamic Programming Decomposition Method for Making Overbooking Decisions Over an Airline Network
INFORMS Journal on Computing
An Improved Dynamic Programming Decomposition Approach for Network Revenue Management
Manufacturing & Service Operations Management
Computing Bid Prices for Revenue Management Under Customer Choice Behavior
Manufacturing & Service Operations Management
Airline planning benchmark problems-Part II: Passenger groups, utility and demand allocation
Computers and Operations Research
Airline planning benchmark problems-Part I
Computers and Operations Research
A branch-and-cut algorithm for the latent-class logit assortment problem
Discrete Applied Mathematics
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During the past few years, there has been a trend to enrich traditional revenue management models built upon the independent demand paradigm by accounting for customer choice behavior. This extension involves both modeling and computational challenges. One way to describe choice behavior is to assume that each customer belongs to a segment, which is characterized by a consideration set, i.e., a subset of the products provided by the firm that a customer views as options. Customers choose a particular product according to a multinomial-logit criterion, a model widely used in the marketing literature. In this paper, we consider the choice-based, deterministic, linear programming model (CDLP) of Gallego et al. (2004) [Gallego, G., G. Iyengar, R. Phillips, A. Dubey. 2004. Managing flexible products on a network. Technical Report CORC TR-2004-01, Department of Industrial Engineering and Operations Research, Columbia University, New York], and the follow-up dynamic programming decomposition heuristic of van Ryzin and Liu (2008) [van Ryzin, G. J., Q. Liu. 2008. On the choice-based linear programming model for network revenue management. Manufacturing Service Oper. Management10(2) 288--310]. We focus on the more general version of these models, where customers belong to overlapping segments. To solve the CDLP for real-size networks, we need to develop a column generation algorithm. We prove that the associated column generation subproblem is indeed NP-hard and propose a simple, greedy heuristic to overcome the complexity of an exact algorithm. Our computational results show that the heuristic is quite effective and that the overall approach leads to high-quality, practical solutions.