TY - JOUR
AU - Lu, Zhaosong
AB - Dynamic pricing for a network of resources over a finite selling horizon has received considerable attention in recent years, yet few papers provide effective computational approaches to solve the problem. We consider a resource decomposition approach to solve the problem and investigate the performance of the approach in a computational study. We compare the performance of the approach to static pricing and choice-based availability control. Our numerical results show that dynamic pricing policies from network resource decomposition can achieve significant revenue lift compared with choice-based availability control and static pricing, even when the latter is frequently resolved. As a by-product of our approach, network decomposition provides an upper bound in revenue, which is provably tighter than the well-known upper bound from a deterministic approximation.
TI - Assessing the Value of Dynamic Pricing in Network Revenue Management
JF - INFORMS Journal on Computing
DO - 10.1287/ijoc.1110.0488
DA - 2013-08-01
UR - https://www.deepdyve.com/lp/informs/assessing-the-value-of-dynamic-pricing-in-network-revenue-management-5J43XRzOjv
SP - 102
EP - 115
VL - 25
IS - 1
DP - DeepDyve
ER -