A survey on risk-averse and robust revenue management

Jochen Gönsch

European Journal of Operational Research, 2017, vol. 263, issue 2, 337-348

Abstract: Many industries use revenue management to balance uncertain, stochastic demand and inflexible capacity. Popular examples include airlines, hotels, car rentals, retailing, and manufacturing. The classical revenue management approaches considered in theory and practice are based on two assumptions. First, demand – as the only uncertain variable – follows a known distribution and, second, risk-neutrality justifies the maximization of expected revenue.

Keywords: Revenue management; Capacity control; Dynamic pricing; Risk-aversion; Robustness (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:263:y:2017:i:2:p:337-348

DOI: 10.1016/j.ejor.2017.05.033

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