Computing Time-Dependent Bid Prices in Network Revenue Management Problems
نویسندگان
چکیده
منابع مشابه
Computing Time-Dependent Bid Prices in Network Revenue Management Problems
We propose a new method to compute bid prices in network revenue management problems. The novel aspect of our method is that it naturally provides dynamic bid prices that depend on how much time is left until departure. We show that our method provides an upper bound on the optimal total expected revenue and this upper bound is tighter than the one provided by the widely known deterministic lin...
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In this paper, we propose new mathematical programming approaches for computing time-dependent bid prices in network revenue management problems. In contrast with previous models, ours can accommodate more than one customer request between two successive bid price updates, as frequently occurs in practice. As a first approach, we introduce a simplified version of our time-dependent bid price mo...
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W consider a choice-based, network revenue management (RM) problem in a setting where heterogeneous customers consider an assortment of products offered by a firm (e.g., different flight times, fare classes, and/or routes). Individual choice decisions are modeled through an ordered list of preferences, and minimal assumptions are made about the statistical properties of this demand sequence. Th...
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We formally derive the standard deterministic linear program (LP) for bid-price control by making an affine functional approximation to the optimal dynamic programming value function. This affine functional approximation gives rise to a new LP that yields tighter bounds than the standard LP. Whereas the standard LP computes static bid prices, our LP computes a time trajectory of bid prices. We ...
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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: Transportation Science
سال: 2010
ISSN: 0041-1655,1526-5447
DOI: 10.1287/trsc.1090.0291