Network Revenue Management Under a Spiked Multinomial Logit Choice Model
研究顾客对最便宜产品有强烈偏好的新选择模型，扩展了多项Logit模型，发现该模型能提升航空公司收益，且能高效计算近似最优的收益管理策略。
Customers are sensitive to price when they shop from a group of substitutable products. Specifically, they are often attracted to the cheapest product in the group, even when the price difference to the next cheapest product is small. Such a phenomenon has been long noticed by the airline industry when customers purchase airline tickets. In “Network Revenue Management under a Spiked Multinomial Logit Choice Model,” Cao, Kleywegt, and Wang consider a new choice model to incorporate customers’ preference toward the cheapest product, which extends the popular multinomial logit choice model. They find that using this new choice model may improve airlines’ revenue. Moreover, (near) optimal revenue management policies under this choice model can be computed in an efficient manner.