Option-based Dynamic Pricing on Airline
Dynamic pricing has been one of the major research areas of revenue management.This paper provided a novel dynamic pricing method based on option and showed how an airline may be considered as the holder of a financial option on tickets.In a fully competitive market,a partial differential equation model was used to describe the financial aspects of the price of tickets and the partial differential equations were established for the call and put option price.Based on the new method,the tickets price has been decided using finite difference method; the amount of tickets sold has been calculated using an integral linear programming.Such a pricing model was much better than the method that didnt take option into consideration.
option revenue managementy dynamic pricing airline integral linear programming
LI Hui RAN Lun LI Jin-lin
School of Management and EconomicsBeijing Institute of TechnologyBeijing,P.R.China School of Management and Economics Beijing Institute of Technology Beijing,P.R.China
国际会议
北京
英文
2008-10-12（万方平台首次上网日期，不代表论文的发表时间）