Article ID: | iaor200970703 |
Country: | United States |
Volume: | 43 |
Issue: | 3 |
Start Page Number: | 381 |
End Page Number: | 394 |
Publication Date: | Aug 2009 |
Journal: | Transportation Science |
Authors: | Adelman Daniel, Zhang Dan |
Keywords: | programming: dynamic, yield management |
We consider a network revenue management problem where customers choose among open fare products according to some prespecified choice model. Starting with a Markov decision process (MDP) formulation, we approximate the value function with an affine function of the state vector. We show that the resulting problem provides a tighter bound for the MDP value than the