OPTIMAL STARTING TIMES FOR END-OF-SEASON SALES AND OPTIMAL STOPPING-TIMES FOR PROMOTIONAL FARES

被引:200
作者
FENG, YY
GALLEGO, G
机构
[1] Department of Industrial Engineering and Operational Research, Columbia University, New York, 10027, NY
关键词
DYNAMIC PRICING; YIELD MANAGEMENT; STOPPING TIMES; INTENSITY CONTROL; MARTINGALES; FINITE HORIZON; OPTIMAL POLICIES;
D O I
10.1287/mnsc.41.8.1371
中图分类号
C93 [管理学];
学科分类号
12 ; 1201 ; 1202 ; 120202 ;
摘要
Many industries face the problem of selling a fixed stock of items over a finite horizon. These industries include airlines selling seats before planes depart, hotels renting rooms before midnight, theaters selling seats before curtain time, and retailers selling seasonal goods such as air-conditioners or winter coats before the end of the season. Given a fixed number of seats, rooms, or coats, the objective for these industries is to maximize revenues in excess of salvage value. When demand is price sensitive and stochastic, pricing is an effective tool to maximize revenues. In this paper we address the problem of deciding the optimal timing or a single price change from a given initial price to either a given lower or higher second price. Under mild conditions, we show that it is optimal to decrease (resp., to increase) the initial price as soon as the time-to-go falls below (resp., above) a time threshold that depends on the number of yet unsold items.
引用
收藏
页码:1371 / 1391
页数:21
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