Modelling Revenue Management Problem under Fare Class Interval Customer Choice

DOI

10.2991/ammsa-17.2017.28How to use a DOI?

Keywords

modeling; customer behavior; customer choice; operational research; revenue management

Abstract

In order to explain customer choice conditioned on opened classes more realistically and efficiently, I assume a customer considers a discrete choice as a fare class interval and buys the lowest opened class with that interval. Unlike the traditional one-dimensioned, unstructured choice model, I model customer choice as a two-dimensioned fare class interval distribution. I take closed set as a more efficient research angle, and find out an additive principle to reduce computation. Then I turn the traditional maximized decision principle into minimized decision principle and get a new model for the maximized total revenue management problem. This model builds the foundation for more efficient explorations to revenue management problem.

Copyright

© 2017, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Baohua Wang
PY  - 2017/05
DA  - 2017/05
TI  - Modelling Revenue Management Problem under Fare Class Interval Customer Choice
BT  - Proceedings of the 2017 International Conference on Applied Mathematics, Modelling and Statistics Application (AMMSA 2017)
PB  - Atlantis Press
SP  - 129
EP  - 132
SN  - 1951-6851
UR  - https://doi.org/10.2991/ammsa-17.2017.28
DO  - 10.2991/ammsa-17.2017.28
ID  - Wang2017/05
ER  -