Dynamic Pricing Strategies for Multiproduct Revenue Management Problems
Manufacturing & Service Operations Management
Robust Controls for Network Revenue Management
Manufacturing & Service Operations Management
Computing Time-Dependent Bid Prices in Network Revenue Management Problems
Transportation Science
An Improved Dynamic Programming Decomposition Approach for Network Revenue Management
Manufacturing & Service Operations Management
Network capacity management under competition
Computational Optimization and Applications
A Re-Solving Heuristic with Bounded Revenue Loss for Network Revenue Management with Customer Choice
Mathematics of Operations Research
Dynamic Pricing with Financial Milestones: Feedback-Form Policies
Management Science
Blind Network Revenue Management
Operations Research
Blind Network Revenue Management
Operations Research
Assessing the Value of Dynamic Pricing in Network Revenue Management
INFORMS Journal on Computing
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Revenue management has become an important tool in the airline, hotel, and rental car industries. We describe asymptotic properties of revenue management policies derived from the solution of a deterministic optimization problem. Our primary results state that, within a stochastic and dynamic framework, solutions arising out of a single well-known linear program can be used to generate allocation policies for which the normalized revenue converges in distribution to a constant upper bound on the optimal value. We also show similar asymptotic results for expected revenues. In addition, we describe counterintuitive behavior that can occur when allocations are updated during the booking process (updating allocations can lead to lower expected revenue). These results add to the understanding of allocation policies and help to make concrete the statement that simple policies from easy-to-solve formulations can be relatively effective, even when analyzed in the more realistic stochastic and dynamic framework.