This paper addresses two concerns with the state of the art in network revenue management with dependent demands. The first concern is that the basic attraction model (BAM), of which the multinomial logit (MNL) model is a special case, tends to overestimate demand recapture in practice. The second concern is that the choice based deterministic linear program, currently in use to derive heuristi...

Introduction These cases focus on the revenue management of a single flight leg with two fare classes and uncertain demand. The (A) Case asks the students to forecast high-fare demand and implement a simple bookinglimit policy. The (B) Case uses simulation to establish booking limits in the presence of buy-up behavior and cancellations. The (C) Case focuses on the spiral-down effect, which occu...

We develop a network revenue management model to jointly make capacity control and overbooking decisions. Our approach is based on the observation that if the penalty cost of denying boarding to the reservations at the departure time were given by a separable function, then the dynamic programming formulation of the network revenue management problem would decompose by the itineraries and it co...