Competitive analysis of revenue management: Online joint pricing and booking strategies
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    Abstract:

    Taking into consideration the unpredictable booking information,we consider the joint ticket pricing and booking problem in the airline industry from the perspective of online algorithms and competitive analysis. Assuming that the process of the passengers meets the low-before-high manner and that the expected value of passengers falls in a closed interval,we propose one optimal online joint policy for each case.Different from previous approaches in this field,the proposed online policies eliminate both the demand forecast and riskneutrality assumption.The proposed policies can dynamically adjust price and allocate the tickets according to the set of bookings previously offered at any point in time.The ratio between the revenue of online joint strategy and the revenue of optimal offline strategy with perfect demand information is always in a certain range.Compared with the existing research,the joint online strategies can identify the types of passengers effectively which relaxes the assumption of knowing the type of passengers.

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  • Online: April 17,2018
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