Airline Overbooking Models with Misspecification
Static overbooking models are studied. Suppose that each reservation shows up independently, and that the probability of showing up is identical among all reservations. Then, the random show demand follows the binomial distribution. However, in practice some overbooking modules assume that the show demand is the product of the overbooking level and the random show-up rate. The decision model embedded in a commercial revenue management system is misspecified. In this article, we explore the consequences of the modeling error. Through numerical experiments, we find that the performance of the model with misspecification decreases as the show-up probability decreases. Among our three choices of show-up rate distributions, the beta model performs best.
Revenue Management Overbooking Stochastic Model Applications Operations Research
Kannapha Amaruchkul Patipan Sae-Lim
School of Applied Statistics National Institute of Development Administration (NIDA)
国际会议
香港·广州
英文
282-289
2010-07-25（万方平台首次上网日期，不代表论文的发表时间）