In WCDMA networks, most economic-based resource management algorithms only assumed that network users were obedient, that is, users only accepted the price declared by network, which is called as price acceptation mechanism. Many research issues argued that it is necessary to accommodate, if possible, to use self-interest behaviours of users to strengthen the technical architecture of network e...

We develop an approximation algorithm for a dynamic capacity allocation problem with Markov modulated customer arrival rates. For each time period and each state of the modulating process, the algorithm approximates the dynamic programming value function using a concave function that is separable across resource inventory levels. We establish via computational experiments that our algorithm inc...

The choice network revenue management model incorporates customer purchase behavior as a function of the offered products, and is the appropriate model for airline and hotel network revenue management, dynamic sales of bundles, and dynamic assortment optimization. The optimization problem is a stochastic dynamic program and is intractable. A certainty-equivalence relaxation of the dynamic progr...

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 ...

The choice network revenue management model incorporates customer purchase behavior as a function of the offered products, and is the appropriate model for airline and hotel network revenue management, dynamic sales of bundles, and dynamic assortment optimization. The optimization problem is a stochastic dynamic program and is intractable, and a linear program approximation called choice determ...

The linear programming approach to approximate dynamic programming has received considerable attention in the recent network revenue management literature. A major challenge of the approach lies in solving the resulting approximate linear programs (ALPs), which often have a huge number of constraints and/or variables. We show that the ALPs can be dramatically reduced in size for both affine and...

Models incorporating more realistic models of customer behavior, as customers choosing from an offer set, have recently become popular in assortment optimization and revenue management. The dynamic program for these models is intractable and approximated by a deterministic linear program called the CDLP which has an exponential number of columns. However, when the segment consideration sets ove...

The network revenue management (RM) problem arises in airline, hotel, media, and other industries where the sale products use multiple resources. It can be formulated as a stochastic dynamic program, but the dynamic program is computationally intractable because of an exponentially large state space, and a number of heuristics have been proposed to approximate its value function. In this paper ...