Abstract
This paper discusses a variable pricing method, which is a special technique of revenue management, in the context of the competitive market of the liner shipping industry. Most papers on competitive variable pricing are based on two fundamental assumptions: (i) the length of a price-adjusting period is short enough so that in each period at most one customer can arrive; and (ii) the real-time inventory levels of all firms constitute public information. This paper relaxes both assumptions so that each interval between two consecutive freight rate changes allows more than one shipper to arrive and that a line knows only its competitors’ initial carrying capacity at the beginning of the sales process. A multi-iteration of genetic algorithm is proposed and numerically tested.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
