Practical Decision Rules for Risk-Averse Revenue Management Using Simulation-Based Optimization - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Practical Decision Rules for Risk-Averse Revenue Management Using Simulation-Based Optimization write by Sebastian Koch. This book was released on 2017. Practical Decision Rules for Risk-Averse Revenue Management Using Simulation-Based Optimization available in PDF, EPUB and Kindle. In practice, human-decision makers often feel uncomfortable with the risk-neutral revenue management systems' output. Reasons include a low number of repetitions of similar events, a critical impact of the achieved revenue for economic survival, or simply business constraints imposed by management. However, solving capacity control problems is a challenging task for many risk measures and the approaches are often not compatible with existing software systems.In this paper, we propose a flexible framework for risk-averse capacity control under customer choice behavior. Existing risk-neutral decision rules are augmented by the integration of adjustable parameters. Our key idea is the application of simulation-based optimization (SBO) to calibrate these parameters. This allows to easily tailor the resulting capacity control mechanism to almost every risk measure and customer choice behavior.In an extensive simulation study, we analyze the impact of our approach on expected utility, conditional value-at-risk (CVaR), and expected value. The results show a superior performance in comparison to risk-neutral approaches from literature.
Risk-Averse Dynamic Pricing Using Mean-Semivariance Optimization
Risk-Averse Dynamic Pricing Using Mean-Semivariance Optimization - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Risk-Averse Dynamic Pricing Using Mean-Semivariance Optimization write by Rainer Schlosser. This book was released on 2023. Risk-Averse Dynamic Pricing Using Mean-Semivariance Optimization available in PDF, EPUB and Kindle. In many revenue management applications risk-averse decision-making is crucial. In dynamic settings, however, it is challenging to find the right balance between maximizing expected rewards and avoiding poor performances. In this paper, we consider time-consistent mean-semivariance (MSV) optimization for dynamic pricing problems within a discrete MDP framework, which are shown to be NP hard. We present a novel fixpoint-based dynamic programming approach to compute risk-sensitive feedback policies with Pareto-optimal combinations of mean and semivariance. We illustrate the effectiveness and the applicability of our concepts compared to state-of-the-art heuristics. For various numerical examples the results show that our approach clearly outperforms all other heuristics and obtains a performance guarantee with less then 0.2% optimality gap. Our approach is general and can be applied to MDPs beyond dynamic pricing.
Probability Models for Economic Decisions, second edition
Probability Models for Economic Decisions, second edition - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Probability Models for Economic Decisions, second edition write by Roger B. Myerson. This book was released on 2019-12-17. Probability Models for Economic Decisions, second edition available in PDF, EPUB and Kindle. An introduction to the use of probability models for analyzing risk and economic decisions, using spreadsheets to represent and simulate uncertainty. This textbook offers an introduction to the use of probability models for analyzing risks and economic decisions. It takes a learn-by-doing approach, teaching the student to use spreadsheets to represent and simulate uncertainty and to analyze the effect of such uncertainty on an economic decision. Students in applied business and economics can more easily grasp difficult analytical methods with Excel spreadsheets. The book covers the basic ideas of probability, how to simulate random variables, and how to compute conditional probabilities via Monte Carlo simulation. The first four chapters use a large collection of probability distributions to simulate a range of problems involving worker efficiency, market entry, oil exploration, repeated investment, and subjective belief elicitation. The book then covers correlation and multivariate normal random variables; conditional expectation; optimization of decision variables, with discussions of the strategic value of information, decision trees, game theory, and adverse selection; risk sharing and finance; dynamic models of growth; dynamic models of arrivals; and model risk. New material in this second edition includes two new chapters on additional dynamic models and model risk; new sections in every chapter; many new end-of-chapter exercises; and coverage of such topics as simulation model workflow, models of probabilistic electoral forecasting, and real options. The book comes equipped with Simtools, an open-source, free software used througout the book, which allows students to conduct Monte Carlo simulations seamlessly in Excel.
Cruise Management
Cruise Management - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Cruise Management write by Alexis Papathanassis. This book was released on 2011-11-03. Cruise Management available in PDF, EPUB and Kindle. Increasingly, cruise operators are utilising information and communication technologies (ICTs) to improve service-effectiveness and process efficiency, both on- and off-board. Therefore, it is worth initiating a discussion on the potential and challenges ICTs entail for both cruise operators’ back-offices and for cruisers’ consumption experiences. This book documents the proceedings of the 1st e-Cruising Conference (Bremerhaven, Germany), which was aimed at discussing the possibilities and applicability of ICTs and mobile services in various aspects of cruise operations. Following a rigorous double-blind review, the best papers were chosen to be incorporated in this volume.
The Theory and Practice of Revenue Management
The Theory and Practice of Revenue Management - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook The Theory and Practice of Revenue Management write by Kalyan T. Talluri. This book was released on 2006-02-21. The Theory and Practice of Revenue Management available in PDF, EPUB and Kindle. Revenue management (RM) has emerged as one of the most important new business practices in recent times. This book is the first comprehensive reference book to be published in the field of RM. It unifies the field, drawing from industry sources as well as relevant research from disparate disciplines, as well as documenting industry practices and implementation details. Successful hardcover version published in April 2004.
