An Overview of Pricing Models for Revenue Management

References

  • Abad P. L. Optimal pricing and lot-sizing under conditions of perishability and partial backodering. Management Sci. (1996) 42:1093–1104LinkGoogle Scholar
  • Awad P., Bitran G., Mondschein S. Pricing policies for a family of substitute perishable products. (2000) . Working paper, MIT Sloan School of Management, Cambridge, MAGoogle Scholar
  • Bass F. M. A new product growth model for consumer durables. Management Sci. (1969) 15:53–72LinkGoogle Scholar
  • Bass F. M. The relationship between difussion rates, experience curves, and demand elasticities for consumer durable technological innovations. J. Bus. (1980) 53:S51–S67CrossrefGoogle Scholar
  • Bazaraa M. S., Sherali H. D., Shetty C. M.Nonlinear Programming: Theory and Algorithms (1993) (John Wiley & Sons Inc., New York) Google Scholar
  • Belobaba P. Air travel demand and airline seat inventory management. (1987a) . Ph.D. dissertation, MIT, Cambridge, MAGoogle Scholar
  • Belobaba P. Airline yield management: An overview of seat inventory control. Transportation Sci. (1987b) 21:63–73LinkGoogle Scholar
  • Belobaba P. Application of a probabilistic decision model to airline seat inventory control. Oper. Res. (1989) 37:183–197LinkGoogle Scholar
  • Ben-Akiva M., Lerman S. R.Discrete Choice Analysis: Theory and Application to Travel Demand (1985) (The MIT Press, Cambridge, MA) Google Scholar
  • Bertsimas D., Popescu I. Revenue management in a dynamic network environment. Transportation Sci. (2000) . ForthcomingGoogle Scholar
  • Besanko D., Winston W. Optimal pricing skimming by a monopolist facing rational consumers. Management. Sci. (1990) 36:555–567LinkGoogle Scholar
  • Bitran G., Gilbert S. M. Managing hotel reservations with uncertain arrivals. Oper. Res. (1996) 44:35–49LinkGoogle Scholar
  • Bitran G., Mondschein S. An application of yield management to the hotel industry considering multiple stays. Oper. Res. (1995) 43:427–443LinkGoogle Scholar
  • Bitran G., Mondschein S. Mailing decisions in the catalog sales industry. Management Sci. (1996) 42:1364–1381LinkGoogle Scholar
  • Bitran G., Monschein S. Periodic pricing of seasonal product in retailing. Management Sci. (1997) 43:427–443LinkGoogle Scholar
  • Bitran G., Caldentey R., Mondschein S. Coordinating clearance markdown sales of seasonal products in the retail chains. Oper. Res. (1998) 46:609–624LinkGoogle Scholar
  • Brynjolfsson E., Smith M. Frictionless commerce? A comparison of Internet and conventional retailers. Management Sci. (1999) 46(4):563–585LinkGoogle Scholar
  • Carol W. J., Grimes R. C. Evolutionary change in product management: Experiences in the car rental industry. Interfaces (1995) 25:84–104LinkGoogle Scholar
  • Chatwin R. E. Optimal dynamic pricing of perishable products with stochastic demand and a finite set of prices. Eur. J., Oper. Res. (2000) 125:149–174CrossrefGoogle Scholar
  • Ciancimino A., Inzerillo G., Lucidi S., Palagi L. A mathematical programming approach for the solution of the railway yield management problem. Transportation Sci. (1999) 33:168–181LinkGoogle Scholar
  • Cooper W. L. Asymptotic behavior of an allocation policy for revenue management. Oper. Res. (2002) 50:720–727LinkGoogle Scholar
  • Courty P., Li H. Timing of seasonal sales. J. Bus. (1999) 72:545–572CrossrefGoogle Scholar
  • de Boer S. V., Freling R., Piersma N. Mathematical programming for network revenue management revisited. Eur. J., Oper. Res. (2002) 137:72–92CrossrefGoogle Scholar
  • Doland R. J., Jeuland A. P. Experience curves and dynamic demand models: Implications for optimal pricing strategies. J. Marketing (1981) 45:52–62CrossrefGoogle Scholar
  • Eliashberg J., Jeuland A. P. The impact of competitive entry in a developing market upon dynamic pricing strategies. Marketing Sci. (1986) 5:20–36LinkGoogle Scholar
  • Elmaghraby W., Keskinocak P. Dynamic pricing: Research overview, current practices and future directions. (2002) . Working paper, Georgia Institute of TechnologyGoogle Scholar
  • Feng Y., Gallego G. Optimal starting times for end-of-season sales and optimal stopping times for promotional fares. Management Sci. (1995) 41:1371–1391LinkGoogle Scholar
  • Feng Y., Gallego G. Perishable asset revenue management with Markovian time dependent demand intensities. Management Sci. (2000) 46:941–956LinkGoogle Scholar
  • Feng Y., Ling P. Optimal booking control on a two-leg flight with multiple fares. (2002) . Working paper, Chinese University of Hong KongGoogle Scholar
  • Feng Y., Xiao B. Maximizing revenues of perishable assets with a risk factor. Oper. Res. (1999) 47:337–341LinkGoogle Scholar
  • Feng Y., Xiao B. A continuous-time yield management model with multiple prices and reversible price changes. Management Sci. (2000a) 48:644–657LinkGoogle Scholar
  • Feng Y., Xiao B. Optimal policies of yield management with multiple predetermined prices. Management Sci. (2000b) 48:332–343Google Scholar
  • Feng Y., Xiao B. A dynamic airline seat control model and its optimal policy. Oper. Res. (2001) 49:938–949LinkGoogle Scholar
  • Feng Y., Xiao B. Intergration of price and seat inventory control for airline revenue management. (2002) . Working paper, Chinese University of Hong KongGoogle Scholar
  • Fisher M., Raman A. Reducing the cost of demand uncertainty through accurate response to early sales. Oper. Res. (1996) 44:87–99LinkGoogle Scholar
  • Gallego G., van Ryzin G. Optimal dynamic pricing of inventories with stochastic demand over finite horizons. Management Sci. (1994) 40:999–1020LinkGoogle Scholar
  • Gallego G., van Ryzin G. A multiproduct dynamic pricing problem and its applications to network yield management. Oper. Res. (1997) 45:24–41LinkGoogle Scholar
  • Gelfand I. M., Fomin S. V.Calculus of Variations (1963) (Prentice-Hall Inc., NJ) Google Scholar
  • Geraghty M. K., Johnson E. Revenue management saves national car rental. Interfaces (1997) 27:107–127LinkGoogle Scholar
  • Glover F., Glover R., Lorenzo J., McMillan C. The passenger mix problem in the scheduled airlines. Interfaces (1982) 12:73–79LinkGoogle Scholar
  • Günther D. P., Chen V. C. P., Johnson E. L. Airline yield management: Optimal bid prices for single-hub problems without cancellations. (1999) . Working paper, ISYE, Georgia TechGoogle Scholar
  • Jain D. C., Rao R. C. Effect of price on the demand for durables: Modeling, estimation, and findings. J. Bus. Econom. Statist. (1990) 8:163–170CrossrefGoogle Scholar
  • Jeuland A. P., Dolan R. J., Zoltners A. An aspect of new product planning: Dynamic pricing. TIMS Studies in the Management Science (1982) Special Issue on Marketing Planning Models(North-Holland Pub., NY) 1–21Google Scholar
  • Kalish S. Monopolist pricing and dynamic demand and production cost. Marketing Sci. (1983) 2:135–159LinkGoogle Scholar
  • Kinberg Y., Rao A. G. Stochastic models of a price promotion. Management Sci. (1975) 21:897–907LinkGoogle Scholar
  • Kincaid W. M., Darling D. A. An inventory pricing problem. J. Math. Anal. Appl. (1963) 7:183–208CrossrefGoogle Scholar
  • Krider R., Weinberg C. Competitive dynamics and the introduction of new products: The motion picture timing game. J. Marketing Res. (1998) 35:1–15CrossrefGoogle Scholar
  • Kurawarwala A., Matsuo H. Forecasting and inventory management of short life-cycle products. Oper. Res. (1996) 44:131–150LinkGoogle Scholar
  • Ladany S., Arbel A. Optimal cruise-liner passenger cabin pricing policy. Eur. J., Oper. Res. (1991) 55:136–147CrossrefGoogle Scholar
  • Lazear E. P. Retail pricing and clearance sales. Amer. Econom. Rev. (1986) 76:14–32Google Scholar
  • Lee T. C., Hersh M. A model for dynamic airline seat inventory control with multiple seat bookings. Transportation Sci. (1993) 27:252–265LinkGoogle Scholar
  • Liang Y. Solution to the continuous time dynamic yield management model. Transportation Sci. (1999) 33:117–123LinkGoogle Scholar
  • Littlewood K. Forecasting and control of passenger bookings. AGIFORS 12th Annual Sympos. Proc. (1972) (Nathanya, Israel) 95–128Google Scholar
  • Mantrala M. K., Rao S. A decision-support system that helps retailers decide order quantities and markdowns for fashion goods. Interfaces (2001) 31:146–165(Part 2, Special Issue)LinkGoogle Scholar
  • Mas-Colell A., Whinston D., Green J.Microeconomic Theory (1995) (Oxford University Press, New York) Google Scholar
  • McGill J. I., van Ryzin G. J. Revenue management: Research overview and prospects. Transportation Sci. (1999) 33:233–256LinkGoogle Scholar
  • Mesak H. I., Berg W. D. Incorporating price and replacement purchases in new product diffusion models for consumer durables. Decision Sci. (1995) 4:425–449CrossrefGoogle Scholar
  • Mesak H. I., Clark J. W. Monopolist optimum pricing and advertising policies for diffusion models of new product innovations. Optimal Control Appl. Methods (1998) 19:111–136CrossrefGoogle Scholar
  • Milgrom P., Roberts J. The economics of modern manufacturing: Technology, strategy, and organization. Amer. Econom. Rev. (1990) 80:511–528Google Scholar
  • Miller B. L. Finite state continuous time Markov decision processes with a finite planning horizon. SIAM J. Control (1968) 6:266–280CrossrefGoogle Scholar
  • Nagle T. Economic foundations for pricing. J. Bus. (1984) 57:S3CrossrefGoogle Scholar
  • Nair S. K., Bapna R. An application of yield management for internet service providers. Naval Res. Logist. (2001) 48:348–362CrossrefGoogle Scholar
  • Oren S. S., Smith S. A.Service Opportunities for Electric Utilities: Creating Differential Products (1993) (Kluwer Acad. Pub., Boston, MA) CrossrefGoogle Scholar
  • Parker P. M. Price elasticity dynamic over the adoption life cycle. Marketing Res. (1992) XXIX:358–367CrossrefGoogle Scholar
  • Rajan A., Rakesh, Steinberg R. Dynamic pricing and ordering decisions by a monopolist. Management Sci. (1992) 38:240–262LinkGoogle Scholar
  • Raman A., DeHoratius N., Ton Z. Execution: The missing link in retail operations. California Management Rev. (2001) 43:136–152CrossrefGoogle Scholar
  • Raman K., Chatterjee R. Optimal monopolist pricing under demand uncertainty in dynamic markets. Management. Sci. (1995) 41:144–162LinkGoogle Scholar
  • Roberts J., Lilien G., Eliashberg J., Lillien G. Explanatory and predictive models of consumer behavior. Handbook in OR & MS (1993) 5(Elsevier Science Pub., New York) 27–82Google Scholar
  • Rothstein M. An airline overbooking model. Transportation Sci. (1971) 5:180–192LinkGoogle Scholar
  • Rothstein M. Hotel overbooking as a Markovian sequential decision process. Decision Sci. (1974) 5:389–404CrossrefGoogle Scholar
  • Schweppe F. C., Caramanis M. C., Tabors R. D., Bohn R.Spot Pricing of Electricity (1987) (Kluwer Academic Publishers, Boston, MA) Google Scholar
  • Smith B., Leimkuhler J., Darrow R., Samuels J. Yield management at American Airlines. Interfaces (1992) 22:8–31LinkGoogle Scholar
  • Smith S. A. A linear programming model for real time pricing of electric power service. Oper. Res. (1993) 41:470–483LinkGoogle Scholar
  • Smith S. A., Achabal D. Clearance pricing and inventory policies for retail chains. Management Sci. (1998) 44:285–300LinkGoogle Scholar
  • Subrahmanyan S., Shoemaker R. Developing optimal pricing and inventory policies for retailers who face uncertain demand. J. Retailing (1996) 72:7–30CrossrefGoogle Scholar
  • Subramanian J., Stidham Jr S., Lautenbacher C. J. Airline yield management with overbooking, cancellations, and no shows. Transportation Sci. (1999) 33:147–167LinkGoogle Scholar
  • Talluri K., van Ryzin G. An analysis of bid-price controls for network revenue management. Management Sci. (1998) 44:1577–1593LinkGoogle Scholar
  • Talluri K., van Ryzin G. A randomized linear programming method for computing network bid prices. Transportation Sci. (1999) 33:207–216LinkGoogle Scholar
  • Talluri K., van Ryzin G. Revenue management under a general discrete choice model of consumer behavior. Management Sci. (2001) . ForthcomingGoogle Scholar
  • Topkis D. M. Minimizing a submodular function on a lattice. Oper. Res. (1978) 26:305–321LinkGoogle Scholar
  • Vulcano G., van Ryzin G., Maglaras C. Optimal dynamic auctions for revenue management. Management Sci. (2002) 48:1388–1407LinkGoogle Scholar
  • Warner E. J., Barsky R. B. The timing and magnitude of retail store markdowns: Evidence from weekends and holidays. Quart. J., Econom. (1995) 110:321–352CrossrefGoogle Scholar
  • Weatherford L., Bodily S. A taxonomy and research overview of perishable-asset revenue management: Yield management, overbooking and pricing. Oper. Res. (1992) 40:831–844LinkGoogle Scholar
  • Williamson E. L. Airline network seat control. (1992) (MIT, Cambridge, MA) . Ph.D. thesisGoogle Scholar
  • Wilson R. B.Nonlinear Pricing (1993) (Oxford University Press, New York) CrossrefGoogle Scholar
  • You P. S. Dynamic pricing in airline seat management for flights with multiple flight legs. Transportation Sci. (1999) 33:192–206LinkGoogle Scholar
  • Zhao W., Zheng Y. S. Optimal dynamic pricing for perishable assets with nonhomogeneous demand. Management. Sci. (2000) 46:375–388LinkGoogle Scholar
  • Zhao W., Zheng Y. S. A dynamic model for airline seat allocation with passenger diversion and no-shows. Transportation Sci. (2001) 35:80–98LinkGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.