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Optimal Booking Limits in the Presence of Strategic Consumer Behavior
Articles and Chapters
  • John G. Wilson, University of Western Ontario
  • Chris K. Anderson, Cornell University
  • Sang-Won Kim, University of Western Ontario
Publication Date
1-1-2006
Abstract
We consider a two-period airline yield management problem where customers may act strategically. Specifically, we allow for the possibility that a customer may decide to defer purchase in the hope that a ticket cheaper than those currently on offer will become available. We also allow for the possibility that some customers will buy a more expensive ticket if the cheaper tickets are not available. We show how to find optimal booking limits in the presence of such strategic customer behavior. We also explicitly incorporate the fact that, once a booking limit has been reached, demand distributions are now censored distributions.
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Required Publisher Statement
© Wiley . Final version published as: Wilson, J. G., Anderson, C. K., & Kim, S. (2006). Optimal booking limits in the presence of strategic consumer behavior. International Transactions in Operational Research, 13(2), 99-110. DOI: 10.1111/j.1475-3995.2006.00537.x. Reprinted with permission. All rights reserved.

Citation Information

Wilson, J. G., Anderson, C. K., & Kim, S. (2006). Optimal booking limits in the presence of strategic consumer behavior [Electronic version]. Retrieved [insert date], from Cornell University, School of Hospitality Administration site: http://scholarship.sha.cornell.edu/articles/423