Expected marginal seat revenue (EMSR) is a well-known method for airline seat inventory control airlines. However, this method employs a static model to study the dynamic reservation process, and does not take into account the risk tolerance of policy makers. Expected marginal seat utility (EMSU) replaces revenue by utility, which addresses the real situation of seat inventory control. However,...

We examine regulation of distribution tariffs in the Mexican natural gas industry. Average revenue in each period is constrained not to exceed an upper bound and is calculated as the ratio of total revenue to output in the current period. This regime implies incentives for setting two-part tariffs strategically. The usage charge is typically dropped to its lowest feasible level while the fixed ...

An order admission model is developed to introduce revenue management into MTO B2B industries. This solution is designed to resolve a common order management dilemma faced by manufacturers with severe seasonal demands. Considering the requirement that manufacturing industries be risk averse, the objective is to maximize the expected total revenue under a targeted capacity utilization constraint...

BACKGROUND There has been a marked increase in the number of Caesarean sections in many countries during the last decades. In several countries, Caesarean sections are carried out in more than 20 per cent of births. These high Caesarean section rates give cause for concern, both from an economic and a medical perspective. A general opinion among epidemiologists is that the increase in the numbe...

INTRODUCTION The balance between revenue and cost of an organization/system is essential to maintain its survival and quality of services. Emergency departments (ED) are one of the most important parts of health care delivery system. Financial discipline of EDs, by increasing the efficiency and profitability, can directly affect the quality of care and subsequently patient satisfaction. Accordi...

One of the main priorities of companies involved in supply chains is improving the quality of their products. However, as in other parts of supply chain management, decentralized decision-making in supply quality management is prevalent, which causes inefficiencies such as the well-known double marginalization phenomenon. Coordinating schemes, such as the revenue sharing contract, can contribut...

Online auction sites often enable sellers to add a buy-out price. In one-shot auctions, this has been motivated by appeal to impatience or risk aversion. We offer additional justification in a dynamic model, by showing that an early seller has an incentive to use a buy-out price, if a similar product is offered later by another seller, and bidders desire multiple objects. Revenue in the first a...