Risk-Averse Capacity Control in Revenue Management

• Main Author: Barz, Christiane (Author)
• Corporate Author: SpringerLink (Online service)
• Format: Electronic eBook
• Language: English
• Published: Berlin, Heidelberg : Springer Berlin Heidelberg, 2007.
• Series: Lecture Notes in Economics and Mathematical Systems, 597
• Subjects: Business.; Marketing.; Production management.; Industrial procurement.; Operations research.; Decision making.; Mathematical optimization.; Business and Management.; Operation Research/Decision Theory.; Operations Management.; Procurement.; Optimization.

“If necessity is the mother of invention, then deregulation is the father, and r- enue management (also known as yield management) is the couple’s golden child – at least as far as operations research is concerned.” (Horner, 2000, p. 47) Deregulation had a signi?cant impact on the U.S. airline indus...

Table of Contents:

• Basic Principles
• Markov Decision Processes and the Total Reward Criterion
• Expected Utility Theory for Sequential Decision Making
• Expected Revenue Maximizing Capacity Control
• Capacity Control in a Random Environment
• Basic Single Resource Capacity Control Models in Revenue Management
• Expected Utility Maximizing Capacity Control
• Capacity Control Maximizing Additive Time-Separable Utility
• Capacity Control Maximizing Atemporal Utility
• An Extension: Capacity Control Under a General Discrete Choice Model of Consumer Behavior
• Conclusion.