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The Customer Valuations Game as a Basis for Revenue Management

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Author Info
Kalyan Talluri ()
Abstract

I describe the customer valuations game, a simple intuitive game that can serve as a foundation for teaching revenue management. The game requires little or no preparation, props or software, takes around two hours (and hence can be finished in one session), and illustrates the formation of classical (airline and hotel) revenue management mechanisms such as advanced purchase discounts, booking limits and fixed multiple prices. I normally use the game as a base to introduce RM and to develop RM forecasting and optimization concepts off it. The game is particularly suited for non-technical audiences.

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File URL: http://www.econ.upf.edu/docs/papers/downloads/1140.pdf
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Publisher Info
Paper provided by Department of Economics and Business, Universitat Pompeu Fabra in its series Economics Working Papers with number 1140.

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Date of creation: Dec 2008
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Handle: RePEc:upf:upfgen:1140

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Web page: http://www.econ.upf.edu/

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Related research
Keywords: Revenue management; teaching; valuations;

Find related papers by JEL classification:
C61 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Optimization Techniques; Programming Models; Dynamic Analysis
L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Recreation; Tourism
M11 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - Production Management

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