Models of the Spiral-Down Effect in Revenue Management
Operations Research
Price Guarantees in Dynamic Pricing and Revenue Management
Operations Research
Dynamic Pricing Strategies for Multiproduct Revenue Management Problems
Manufacturing & Service Operations Management
Revenue management: models and methods
Proceedings of the 40th Conference on Winter Simulation
Dynamic Pricing and Inventory Control of Substitute Products
Manufacturing & Service Operations Management
Data Set---Choice-Based Revenue Management: Data from a Major Hotel Chain
Manufacturing & Service Operations Management
A Column Generation Algorithm for Choice-Based Network Revenue Management
Operations Research
Toward Robust Revenue Management: Competitive Analysis of Online Booking
Operations Research
Dynamic Revenue Management in Airline Alliances
Transportation Science
OM Practice---Choice-Based Revenue Management: An Empirical Study of Estimation and Optimization
Manufacturing & Service Operations Management
Revenue Management with Partially Refundable Fares
Operations Research
Joint Dynamic Pricing of Multiple Perishable Products Under Consumer Choice
Management Science
An Improved Dynamic Programming Decomposition Approach for Network Revenue Management
Manufacturing & Service Operations Management
Revenue management: models and methods
Winter Simulation Conference
Adaptive Appointment Systems with Patient Preferences
Manufacturing & Service Operations Management
Computing Bid Prices for Revenue Management Under Customer Choice Behavior
Manufacturing & Service Operations Management
Seat inventory control for sequential multiple flights with customer choice behavior
Computers and Industrial Engineering
A Re-Solving Heuristic with Bounded Revenue Loss for Network Revenue Management with Customer Choice
Mathematics of Operations Research
In-Season Transshipments Among Competitive Retailers
Manufacturing & Service Operations Management
Estimating Primary Demand for Substitutable Products from Sales Transaction Data
Operations Research
Cargo Capacity Management with Allotments and Spot Market Demand
Operations Research
A Nonparametric Approach to Modeling Choice with Limited Data
Management Science
Sustainable revenue management: A smart card enabled agent-based modeling approach
Decision Support Systems
Assessing the Value of Dynamic Pricing in Network Revenue Management
INFORMS Journal on Computing
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Customer choice behavior, such as buy-up and buy-down, is an important phenomenon in a wide range of revenue management contexts. Yet most revenue management methodologies ignore this phenomenon - or at best approximate it in a heuristic way. In this paper, we provide an exact and quite general analysis of this problem. Specifically, we analyze a single-leg reserve management problem in which the buyers' choice behavior is modeled explicitly. The choice model is very general, simply specifying the probability of purchase for each fare product as a function of the set of fare products offered. The control problem is to decide which subset of fare products to offer at each point in time. We show that the optimal policy for this problem has a quite simple form. Namely, it consists of identifying an ordered family of "efficient" subsets S 1 ,..., S m , and at each point in time opening one of these sets S k , where the optimal index k is increasing in the remaining capacity x and decreasing in the remaining time. That is, the more capacity (or less time) available, the further the optimal set is along this sequence. We also show that the optimal policy is a nested allocation policy if and only if the sequence of efficient sets is nested, that is S 1 ? S 2 ?... ? S m . Moreover, we give a characterization of when nesting by fare order is optimal. We also develop an estimation procedure for this setting based on the expectation-maximization (EM) method that jointly estimates arrival rates and choice model parameters when no-purchase outcomes are unobservable. Numerical results are given to illustrate both the model and estimation procedure.