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A framework for solving network revenue management problems with customer choice behavior

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  • Petr Fiala

Abstract

Revenue management is the process of understanding, anticipating and influencing consumer behavior in order to maximize revenue. Network revenue management models attempt to maximize revenue when customers buy bundles of multiple resources. The dependence among the resources in such cases is created by customer demand. Network revenue management can be formulated as a stochastic dynamic programming problem whose exact solution is computationally intractable. Solutions are based on approximations of various types. Customer choice behavior modeling has been gaining increasing attention in the revenue management. A framework for solving network revenue management problems with customer choice behavior is proposed. The modeling and solving framework is composed from three inter-related network structures: basic network model, Petri net, and neural net. Copyright Springer-Verlag 2012

Suggested Citation

  • Petr Fiala, 2012. "A framework for solving network revenue management problems with customer choice behavior," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 20(3), pages 383-392, September.
    • Handle: RePEc:spr:cejnor:v:20:y:2012:i:3:p:383-392
    DOI: 10.1007/s10100-012-0241-z
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    References listed on IDEAS

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    Cited by:

    1. Una McMahon-Beattie & Mairead McEntee & Robert McKenna & Ian Yeoman & Lynsey Hollywood, 2016. "Revenue management, pricing and the consumer," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 15(3), pages 299-305, July.
    2. Josef Jablonsky & Petr Fiala, 2012. "Special issue of the Czech Society for Operations Research," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 20(3), pages 367-368, September.

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