Revenue Management and E-Commerce
Management Science
ACM SIGMETRICS Performance Evaluation Review
Retailer-Supplier Flexible Commitments Contracts: A Robust Optimization Approach
Manufacturing & Service Operations Management
A Price-Directed Approach to Stochastic Inventory/Routing
Operations Research
Decision Support for Consumer Direct Grocery Initiatives
Transportation Science
Revenue management: models and methods
Proceedings of the 40th Conference on Winter Simulation
Bid-Price Controls for Network Revenue Management: Martingale Characterization of Optimal Bid Prices
Mathematics of Operations Research
Robust Controls for Network Revenue Management
Manufacturing & Service Operations Management
Dynamic Revenue Management in Airline Alliances
Transportation Science
Computing Time-Dependent Bid Prices in Network Revenue Management Problems
Transportation Science
Dynamic control mechanisms for revenue management with flexible products
Computers and Operations Research
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
Revenue management: models and methods
Winter Simulation Conference
A two-stage bid-price control for make-to-order revenue management
Computers and Operations Research
Network Cargo Capacity Management
Operations Research
Computing Bid Prices for Revenue Management Under Customer Choice Behavior
Manufacturing & Service Operations Management
Cargo Capacity Management with Allotments and Spot Market Demand
Operations Research
Simulation-based methods for booking control in network revenue management
Proceedings of the Winter Simulation Conference
Assessing the Value of Dynamic Pricing in Network Revenue Management
INFORMS Journal on Computing
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Bid-prices are becoming an increasingly popular method for controlling the sale of inventoryin 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 a product (a seat in a fare class on an itinerary or room for a sequence of dates) is sold only if the offered fare exceeds the sum of the threshold prices of all the resources needed to supply the product. This approach is appealing on intuitive and practical grounds, but the theory underlying it is not well developed. Moreover, the extent to which bid-price controls represent optimal or near optimal policies is not well understood. Using a general model of the demand process, we show that bid-price control is not optimal in general and analyze why bid-price schemes can fail to produce correct accept/deny decisions. However, we prove that when leg capacities and sales volumes are large, bid-price controls are asymptotically optimal, provided the right bid prices are used. We also provide analytical upper bounds on the optimal revenue. In addition, we analyze properties of the asymptotically optimal bid prices. For example, we show they are constant over time, even when demand is nonstationary, and that they may not be unique.