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Optimal control of a revenue management system...
Journal article

Optimal control of a revenue management system with dynamic pricing facing linear demand

Abstract

This paper considers a dynamic pricing problem over a finite horizon where demand for a product is a time‐varying linear function of price. It is assumed that at the start of the horizon there is a fixed amount of the product available. The decision problem is to determine the optimal price at each time period in order to maximize the total revenue generated from the sale of the product. In order to obtain structural results we formulate the …

Authors

Chou F; Parlar M

Journal

Optimal Control Applications and Methods, Vol. 27, No. 6, pp. 323–347

Publisher

Wiley

Publication Date

November 2006

DOI

10.1002/oca.785

ISSN

0143-2087