Dynamic Pricing and Revenue Management

Abstract

An active and rapidly growing applied operations research discipline is the field known as revenue management (RM). The principal intent of revenue management is to extract all unused willingness to pay from consumers of differentiated services and products. Talluri and van Ryzin (2004) provide a comprehensive introduction to most aspects of the theory and practice of revenue management. For this chapter, our goal is to illustrate and solve some differentialNash games that occur in network revenue management and that provide critical information about pricing, resource allocation, and demand management to retailers and service providers.