Article
Management
Rainer Schlosser, Jochen Goensch
Summary: In this paper, the authors focus on the importance of risk-averse decision-making in revenue management applications. They propose a novel fixpoint-based dynamic programming approach to compute risk-sensitive feedback policies with Pareto-optimal combinations of mean and semivariance. The results demonstrate that their approach outperforms state-of-the-art heuristics and achieves a performance guarantee with less than 0.2% optimality gap.
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
(2023)
Article
Operations Research & Management Science
Renato de Matta, Timothy J. Lowe
Summary: Empirical studies have shown that sellers with better customer feedback scores can charge higher prices. This study builds a system model to analyze the processes of customer arrival and reservation price formation, customer feedback collection and aggregation into a Seller Service Rating (SSR), and determining the optimal pricing strategy. It uses a simulation-optimization approach to overcome technical difficulties in finding analytical solutions.
ANNALS OF OPERATIONS RESEARCH
(2023)
Article
Automation & Control Systems
Ehram Safari, Vahid Roshanaei, Amir Rastpour
Summary: This article presents a robust optimization formulation to address the issue of demand uncertainty in web service dynamic pricing. It introduces an algorithm to find the optimal pricing strategy within a finite time period and conducts numerical analyses to evaluate the impact of uncertainty. The proposed algorithm outperforms other algorithms in terms of time and accuracy.
OPTIMAL CONTROL APPLICATIONS & METHODS
(2022)
Article
Management
Wenchang Zhu, Huseyin Topaloglu
Summary: This study focuses on network revenue management problems with flexible products, aiming to find a policy to maximize the total expected revenue and ensure feasible route assignments for customers with purchased products. The developed policy is the first with a performance guarantee under flexible products.
M&SOM-MANUFACTURING & SERVICE OPERATIONS MANAGEMENT
(2023)
Article
Management
Florian Martin, Vera C. Hemmelmayr, Tina Wakolbinger
Summary: Express parcel carriers use different guaranteed delivery times and pricing strategies to attract different types of customers. A new model has been proposed to optimize logistics operations by considering the interplay between delivery times, customer decisions, and distribution restrictions. Through a heuristic approach, the model simultaneously determines the optimal delivery times, pricing scheme, and load plan to maximize profit.
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
(2021)
Article
Engineering, Multidisciplinary
Keyvan Kamandanipour, Siamak Haji Yakhchali, Reza Tavakkoli-Moghaddam
Summary: This article proposes a data-driven ticket dynamic pricing methodology for passenger railway service providers. The methodology aims to maximize revenue under constrained train capacity by using machine learning and optimization tools. The results of the study indicate that the proposed methodology has the potential to improve service provider's revenue.
ENGINEERING OPTIMIZATION
(2023)
Article
Business
Graziano Abrate, Ruggero Sainaghi, Aurelio G. Mauri
Summary: The study explores the impact of professionalization level of Airbnb hosts on pricing strategies and listing performance. Findings suggest that both listing performance and price variability tend to increase with the degree of professionalization, while the effect of price variability on performance remains consistent regardless of the number of listings. Time-varying pricing is considered an important and relatively accessible strategy for hosts of all professional levels.
JOURNAL OF BUSINESS RESEARCH
(2022)
Article
Management
Denis Lebedev, Paul Goulart, Kostas Margellos
Summary: This study focuses on revenue management in attended home delivery using dynamic programming. The unique fixed point of the underlying Bellman operator is proven, with a closed-form expression and continuous extension provided. Monotonicity of prices with respect to the number of orders placed is shown, offering a pathway for scalable implementations.
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
(2021)
Article
Engineering, Manufacturing
Yan Liu, Ningyuan Chen
Summary: The study suggests that for products that can be returned instantly, the optimal MBG policy is a simple threshold policy, with the threshold decreasing with inventory level. Additionally, the complexity of dynamic pricing and positive return times is analyzed, and deterministic solutions are found to be asymptotically optimal for stochastic systems.
PRODUCTION AND OPERATIONS MANAGEMENT
(2022)
Article
Management
Arne Strauss, Nalan Gulpinar, Yijun Zheng
Summary: The study proposes the introduction of flexible delivery time slots in e-commerce to exploit customer flexibility, offer reduced delivery charges and highlight environmental benefits. A tractable linear programming formulation is developed to link demand management and routing cost implications, enabling the development of a dynamic pricing policy.
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
(2021)
Article
Management
Boqian Song, Michael Z. F. Li, Weifen Zhuang
Summary: This study examines the impact of dynamic channel control and pricing on the distribution of a single perishable product through multiple channels, using stylized linear functions and two types of commissions to analyze dependent demand flows from different channels. It is found that the magnitude of the opportunity cost of capacity uniquely determines the optimal channel control strategy and pricing decisions.
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
(2021)
Article
Management
Jagan Jacob, Ricky Roet-Green
Summary: The study develops a queuing model to find the optimal revenue for ride-sharing platforms when passengers are strategic and drivers are independent agents. It shows that offering both solo and pooled rides is optimal when passenger distribution is not skewed and congestion is not high, with counterintuitive benefits from offering only one ride choice in high congestion scenarios. Simulation-based results further extend these findings in the presence of multiple routes.
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
(2021)
Article
Computer Science, Artificial Intelligence
Andrei M. Bandalouski, Natalja G. Egorova, Mikhail Y. Kovalyov, Erwin Pesch, S. Armagan Tarim
Summary: This paper introduces a novel approach to the dynamic pricing problem for hotel businesses, which includes disaggregation of demand, forecasting, elastic demand simulation, and a mathematical programming model. Experiment results show a 6% increase in hotel revenue compared to past performance with fixed pricing policy, proving its potential as a useful tool for small hotels impacted by the COVID-19 pandemic.
JOURNAL OF HEURISTICS
(2021)
Article
Economics
Marco Alderighi, Alberto A. Gaggero, Claudio A. Piga
Summary: When a firm can sell multiple units before any price adjustment takes place, three forces may affect the pricing of the inventory over time: perishability drives prices down, scarcity shifts prices up, and intertemporal price discrimination raises prices. Hidden prices arise because each unit, even if not immediately up for sale, is assigned a price. Empirical analysis of airline fares shows the existence of each force.
TRANSPORTATION RESEARCH PART B-METHODOLOGICAL
(2022)
Article
Management
Catherine Cleophas, Claudia Schuetze
Summary: This article examines the impact of behavioral factors on decision-making in revenue management. Results from the laboratory study show that participants struggle to accommodate nonstationary willingness to pay and exhibit a combination of optimism and loss aversion biases. Furthermore, participants anchor their decisions on customers' willingness to pay.
Article
Engineering, Industrial
Jochen Goensch
INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS
(2015)
Article
Operations Research & Management Science
Jochen Goensch, Michael Hassler
Review
Management
Jochen Goensch
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
(2017)
Article
Green & Sustainable Science & Technology
R. Sharifi, A. Anvari-Moghaddam, S. H. Fathi, J. M. Guerrero, V. Vahidinasab
JOURNAL OF RENEWABLE AND SUSTAINABLE ENERGY
(2017)
Article
Operations Research & Management Science
Sebastian Koch, Jochen Goensch, Claudius Steinhardt
TRANSPORTATION SCIENCE
(2017)
Article
Operations Research & Management Science
Oliver Faust, Jochen Goensch, Robert Klein
TRANSPORTATION SCIENCE
(2017)
Review
Management
Jochen Goensch
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
(2020)
Article
Management
Rouven Schur, Jochen Goensch, Michael Hassler
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
(2019)
Article
Management
Benedikt Finnah, Jochen Goensch, Florian Ziel
Summary: This paper addresses the decision problem of an owner of an energy storage who trades on two energy markets, considering ramping times and the influence of price forecasts on expected profit. Approximate dynamic programming is used to solve the problem and is compared with other approaches in a numerical study.
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
(2022)
Article
Operations Research & Management Science
Matthias Soppert, Claudius Steinhardt, Christian Mueller, Jochen Goensch
Summary: Shared mobility systems have become an integral part of urban transportation, and pricing optimization is crucial for increasing profits. This paper introduces a differentiated, profit-maximizing pricing problem based on the origin of rentals in shared mobility systems. A temporal decomposition approach based on approximate dynamic programming is proposed to solve the problem. Computational experiments show the benefits of capturing network effects in pricing and the accuracy of the proposed approach in predicting profits. A case study based on Share Now data from Florence, Italy, demonstrates a profit increase of around 9% compared to the industry standard of constant uniform minute prices.
TRANSPORTATION SCIENCE
(2022)
Article
Operations Research & Management Science
Christian Mueller, Jochen Goensch, Matthias Soppert, Claudius Steinhardt
Summary: This article examines a dynamic pricing approach based on idle time data in shared mobility systems. By using online optimization and integrating different types of historical idle time data, this method improves operational performance and predicts future profits. In an extensive numerical study, the approach outperforms current pricing practice in terms of profit.
Article
Operations Research & Management Science
Christian Jaeck, Jochen Goensch, Hans Doermann-Osunaa
Summary: The distribution of passenger vehicles is a complex and costly task for automotive OEMs. This paper presents two methodologies to approximate realistic load factors for modern auto carriers, considering their flexibility and constraints. Computational experiments using real-world data show that the proposed approaches can improve load capacity and reduce costs compared to current industry solutions.
TRANSPORTATION SCIENCE
(2023)
Article
Business, Finance
Sebastian Koch, Jochen Goensch, Michael Hassler, Robert Klein
JOURNAL OF REVENUE AND PRICING MANAGEMENT
(2016)
Article
Management
Jochen Goensch, Claudius Steinhardt
REVIEW OF MANAGERIAL SCIENCE
(2015)