CDLP-Based Bid-Prices for Network Revenue Management

MIRANDA-BRONT, JUAN JOSÉ; VULCANO, GUSTAVO; MÉNDEZ-DÍAZ, ISABEL; ZABALA, PAULA

Buenos Aires

Workshop; Workshop in Operations, Networks and Data Analytics; 2018

Universidad Torcuato Di Tella

The primal solution of the linear programming formulation for choice-basedrevenue management (CDLP) is known to be effective from a revenue perspective.However, from a practical perspective, there is a representation issue since airline systemsare in principle incompatible with those offer sets. In this work, we consider a variation ofthe CDLP that naturally generates bid-prices. Based on our numerical experiments, theirperformance is promising