A Discrete Choice Model of Yield Management

摘要: Customer choice behavior, such as "buy-up" and "buy-down", is an important phenomenon in a wide range of industries. Yet there are few models or methodologies available to exploit this within yield management systems. We make some progress on filling void. Specifically, we develop model which the buyers' behavior modeled explicitly using multi-nomial logit demand. The control problem decide subset fare classes offer at each point time. formulate dynamic program determine optimal policy show that it reduces nested allocation policy.