An optimal variable pricing model for container line revenue management systems

Ming Yin, Zheng Wan (), Kap Hwan Kim and Shi Yuan Zheng
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Ming Yin: Shanghai Maritime University
Zheng Wan: Shanghai Maritime University
Kap Hwan Kim: Pusan National University
Shi Yuan Zheng: Shanghai Maritime University

Maritime Economics & Logistics, 2019, vol. 21, issue 2, No 2, 173-191

Abstract: Abstract This paper discusses a variable pricing method, which is a special technique of revenue management, in the context of the competitive market of the liner shipping industry. Most papers on competitive variable pricing are based on two fundamental assumptions: (i) the length of a price-adjusting period is short enough so that in each period at most one customer can arrive; and (ii) the real-time inventory levels of all firms constitute public information. This paper relaxes both assumptions so that each interval between two consecutive freight rate changes allows more than one shipper to arrive and that a line knows only its competitors’ initial carrying capacity at the beginning of the sales process. A multi-iteration of genetic algorithm is proposed and numerically tested.

Keywords: Container liner shipping; Variable pricing; Revenue management; Nash equilibrium (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (2)

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DOI: 10.1057/s41278-017-0082-8

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