Simulation-based methods for booking control in network revenue management

Kunnumkal, S and Topaloglu, H (2010) Simulation-based methods for booking control in network revenue management. In: 43rd Winter Simulation Conference, 5-8, Dec, 2010, USA.

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Abstract

In this paper, we describe simulation-based stochastic approximation algorithms to find good bid price policies for booking control over an airline network. Our general approach visualizes the total expected profit as a function of the bid prices and searches for a good set of bid prices by using sample path derivatives of the total expected profit function. We demonstrate that the iterates of our stochastic approximation algorithms converge to a stationary point of the total expected profit function with probability one. Our computational experiments indicate that the bid prices computed by our approach perform quite well.

ISB Creators:

ISB Creators	ORCiD
Kunnumkal, S	UNSPECIFIED

Item Type:

Conference or Workshop Item (Paper)

Uncontrolled Keywords:

Airline networks; Computational experiment; Expected profits; General approach; Price policy; Revenue management; Sample path; Simulation-based; Simulation-based method; Stationary points; Stochastic approximation algorithms

Subjects:

Operations Management

Depositing User:

Mohan Dass

Date Deposited:

13 Nov 2014 06:40

Last Modified:

13 Nov 2014 13:08

URI:

http://eprints.exchange.isb.edu/id/eprint/239

Publisher URL:

http://dx.doi.org/10.1109/WSC.2010.5678881