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Structural properties of network revenue management models: An economic perspective

✍ Scribed by Alec Morton


Publisher
John Wiley and Sons
Year
2006
Tongue
English
Weight
160 KB
Volume
53
Category
Article
ISSN
0894-069X

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✦ Synopsis


Abstract

Many revenue management problems have a network aspect. In this paper, we argue that a network can be thought of as a system of substitutable and complementary products, and the value of a revenue management model should be supermodular or submodular in the availability of two resources as the resources are economic substitutes or complements. We demonstrate that this is true in the case of a two‐resource dynamic stochastic revenue management model and show how this applies for multi‐resource deterministic static revenue management models. © 2006 Wiley Periodicals, Inc. Naval Research Logistics, 2006