On Bid-price Controls for Network Revenue Management
نویسندگان
چکیده
منابع مشابه
An Analysis of Bid-Price Controls for Network Revenue Management
Bid-prices are becoming an increasingly popular method for controlling the sale of inventory in 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 ...
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This paper studies a multi-stage stochastic programming model for large-scale network revenue management. We solve the model by means of the so-called Expected Future Value (EFV) decomposition via scenario analysis, estimating the impact of the decisions made at a given stage on the objective function value related to the future stages. The EFV curves are used to define bid prices on bundles of...
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I n the classic revenue management (RM) problem of selling a fixed quantity of perishable inventories to price-sensitive non-strategic consumers over a finite horizon, the optimal pricing decision at any time depends on two important factors: consumer valuation and bid price. The former is determined exogenously by the demand side, while the latter is determined jointly by the inventory level o...
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R management models traditionally assume that future demand is unknown but can be described by a stochastic process or a probability distribution. Demand is, however, often difficult to characterize, especially in new or nonstationary markets. In this paper, we develop robust formulations for the capacity allocation problem in revenue management using the maximin and the minimax regret criteria...
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In many implemented network revenue management systems, a bid price control is being used. In this form of control bid, prices are attached to resources, and a product is offered if the revenue derived from it exceeds the sum of the bid prices of its consumed resources. This approach is appealing because once bid prices have been determined, it is fairly simple to derive the products that shoul...
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ژورنال
عنوان ژورنال: Stochastic Systems
سال: 2015
ISSN: 1946-5238,1946-5238
DOI: 10.1287/12-ssy081