Decision biases in revenue management revisited: Dynamic decision?making under stationary and nonstationary demand

Decision Biases in Revenue Management: Some Behavioral Evidence

We study a problem of selling a fixed number of goods over a finite and known horizon. After presenting a procedure for computing optimal decision policies and some numerical results on a simple heuristic policy for the problem, we describe results from three experiments involving financially motivated subjects. The experiments reveal that decision makers employ policies of the same form of the...

Unconstraining Methods for Revenue Management Systems under Small Demand

Forecast combination in revenue management demand forecasting

The domain of multi level forecast combination is a challenging new domain containing a large potential for forecast improvements. This thesis presents a theoretical and experimental analysis of different types of forecast diversification on forecast error covariances and resulting combined forecast quality. Three types of diversification are used: (a) diversification concerning the level of le...

Inventory management with partially observed nonstationary demand

We consider a continuous-time model for inventory management with Markov modulated non-stationary demands. We introduce active learning by assuming that the state of the world is unobserved and must be inferred by the manager. We also assume that demands are observed only when they are completely met. We first derive the explicit filtering equations and pass to an equivalent fully observed impu...

The Stationary - NonStationary Process and The Variable Roots Difference Equations

Stochastic, processes can be stationary or nonstationary. They depend on the magnitude of shocks. In other words, in an auto regressive model of order one, the estimated coefficient is not constant. Another finding of this paper is the relation between estimated coefficients and residuals. We also develop a catastrophe and chaos theory for change of roots from stationary to a nonstationary one ...