Using Lagrangian Relaxation to Compute Capacity-Dependent Bid Prices in Network Revenue Management

We propose a new method to compute bid prices in network revenue management problems. The novel aspect of our method is that it explicitly considers the temporal dynamics of the arrivals of the itinerary requests and generates bid prices that depend on the remaining leg capacities. Our method is bas...

Full description

Saved in:

Bibliographic Details
Published in:	Operations research Vol. 57; no. 3; pp. 637 - 649
Main Author:	Topaloglu, Huseyin
Format:	Journal Article
Language:	English
Published:	Hanover, MD INFORMS 01.05.2009 Institute for Operations Research and the Management Sciences
Subjects:	Air transportation and traffic Analysis applications Applied sciences Approximation Bid prices Determinism Dynamic programming dynamic programming/optimal control Exact sciences and technology Ground, air and sea transportation, marine construction Lagrange multiplier Lagrange multipliers Lagrangian function Lagrangian functions Mathematical programming Matrices Operational research and scientific management Operational research. Management science Optimal solutions Portfolio management Pricing probability Revenue Revenue management stochastic model applications Stochastic models Studies Total revenue Vehicular flight United States Stochastic model Probabilistic approach Income Linear programming Network management Upper bound Lagrange multiplier Load capacity Optimal control Relaxation method Air transportation Dynamic programming Tariffication dynamic programming/optimal control: applications probability: stochastic model applications
ISSN:	0030-364X, 1526-5463
Online Access:	Get full text
Tags:	Add Tag No Tags, Be the first to tag this record!

Be the first to leave a comment!