Please use this identifier to cite or link to this item:
Title: Continuous-time yield management model with multiple prices and reversible price changes
Authors: Feng, Y. 
Xiao, B.
Issue Date: 2000
Citation: Feng, Y.,Xiao, B. (2000). Continuous-time yield management model with multiple prices and reversible price changes. Management Science 46 (5) : 644-657. ScholarBank@NUS Repository.
Abstract: This article studies a continuous-time yield management model in which reversible price changes are allowed. We assume that perishable assets are offered at a set of discrete price levels. Demand at each level is a Poisson process. To maximize the expected revenue, management controls the price dynamically as sales evolve. We show that a subset of these prices that form a concave envelope is potentially optimal. We formulate the problem into an intensity control model and derive the optimal solution in closed form. Properties of the optimal solution and their policy implementations are discussed. Numerical examples are provided.
Source Title: Management Science
ISSN: 00251909
Appears in Collections:Staff Publications

Show full item record
Files in This Item:
There are no files associated with this item.

Page view(s)

checked on Jun 23, 2022

Google ScholarTM


Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.