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Computational Management Science

, Volume 12, Issue 1, pp 99–109 | Cite as

The impact of customer behavior models on revenue management systems

  • Shadi Sharif Azadeh
  • M. Hosseinalifam
  • G. Savard
Original Paper

Abstract

Revenue management (RM) can be considered an application of operations research in the transportation industry. For these service companies, it is a difficult task to adjust supply and demand. In order to maximize revenue, RM systems display demand behavior by using historical data. Usually, parametric methods are applied to estimate the probability of choosing a product at a given time. However, parameter estimation becomes challenging when we need to deal with constrained data. In this research, we evaluate the performance of a revenue management system when a non-parametric method for choice probability estimation is chosen. The outcomes of this method have been compared to the total expected revenue using synthetic data.

Keywords

Revenue management Parametric and non-parametric demand models Customer choice behaviour 

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Copyright information

© Springer-Verlag Berlin Heidelberg 2014

Authors and Affiliations

  • Shadi Sharif Azadeh
    • 1
  • M. Hosseinalifam
    • 1
  • G. Savard
    • 1
  1. 1.Polytechnique MontrealMontréalCanada

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