Dynamic bid prices in revenue management

被引：142

作者：

Adelman, Daniel ^{[1
]}

机构：

[1] Univ Chicago, Grad Sch Business, Chicago, IL 60637 USA

来源：

OPERATIONS RESEARCH | 2007年 / 55卷 / 04期

关键词：

Bid prices; Dynamic programming/optimal control: applications; approximate; Revenue management; pricing:; network;

D O I：

10.1287/opre.1060.0368

中图分类号：

C93 [管理学];

学科分类号：

12 ; 1201 ; 1202 ; 120202 ;

摘要：

We formally derive the standard deterministic linear program (LP) for bid-price control by making an affine functional approximation to the optimal dynamic programming value function. This affine functional approximation gives rise to a new LP that yields tighter bounds than the standard LP. Whereas the standard LP computes static bid prices, our LP computes a time trajectory of bid prices. We show that there exist dynamic bid prices, optimal for the LP, that are individually monotone with respect to time. We provide a column generation procedure for solving the LP within a desired optimality tolerance, and present numerical results on computational and economic performance.

引用

页码：647 / 661

页数：15

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