Article ID: | iaor20072917 |
Country: | United States |
Volume: | 53 |
Issue: | 8 |
Start Page Number: | 748 |
End Page Number: | 760 |
Publication Date: | Dec 2006 |
Journal: | Naval Research Logistics |
Authors: | Morton Alec |
Keywords: | marketing, economics, optimization, yield management |
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.