The stochastic knapsack revisited: Switch-over policies and dynamic pricing

Operations Research

Volumn 56, Issue 4, 2008, Pages 945-957

  Lin, Grace Y ^a   Lu, Yingdong ^a   Yao, David D ^b  

^a IBM   (United States)

^b Columbia University ^*  (United States)

Author keywords

[No Author keywords available]

Indexed keywords

ADMISSION CONTROLS; ASYMPTOTIC OPTIMALITY; CONVEX PROGRAMMING; DYNAMIC PRICING; DYNAMIC RESOURCE ALLOCATIONS; PRICE REDUCTIONS; PRICING MODELS; REVENUE MANAGEMENTS; STOCHASTIC KNAPSACKS; VALUE FUNCTIONS; WIDE-RANGING APPLICATIONS;

ECONOMICS; PLANNING; RANDOM PROCESSES; RESOURCE ALLOCATION; STOCHASTIC MODELS; SYSTEMS ENGINEERING; WIRELESS LOCAL AREA NETWORKS (WLAN);

COSTS;

EID: 61349143158     PISSN: 0030364X     EISSN: 15265463     Source Type: Journal    
DOI: 10.1287/opre.1080.0555     Document Type: Article

References (23)

1. Bicheler, M., J. Kalagnanam, K. Kaankatiraoglu, A. J. King, R. D. Lawrence, H. S. Lee, G. Y. Lin, Y. Lu. 2002. Applications of flexible pricing in business-to-business electronics commerce. IBM System J. 41(2) 287-302.
2. Bitran, G., S. Mondschein. 1995. An application of yield management to the hotel industry considering multiple day stays. Oper: Res. 43 427-443.
3. Brummelle, S., D. Walczak. 2003. Dynamic airline revenue management with multiple semi-Markov demand. Oper: Res. 51 137-148.
4. Cao, H., Y. Jang, Y. Lu. 2002. Bid pricing with incomplete data via an EM approach. Working paper, IBM T. J. Watson Research Center, Yorktown Heights, NY
5. Cooper, W. 2002. Asymptotic behavior of an allocation policy for revenue management. Oper: Res. 50 720-727.
6. Derman, C., G. J. Lieberman, S. M. Ross. 1972. A sequential stochastic assignment problem. Management Sci. 18 349-355.
7. Feng, Y., G. Gallego. 1995. Optimal stopping times for end of seasons sales and optimal stopping times for promotional fares. Management Sci. 41 1372-1391.
8. Feng, Y., G. Gallego. 2000. Perishable asset revenue management with Markovian time dependent demand intensities. Management Sci. 46 941-956.
9. Feng, Y., B. Xiao. 2000. Optimal policies of yield management with multiple predetermined prices. Oper: Res. 48 332-343.
10. Gallego, G., G. van Ryzin. 1997. A multiproduct dynamic pricing problem and its applications to network yield management. Oper. Res. 45 24-41.
11. Kleywegt, A. J., J. D. Papastavrou. 1998. The dynamic and stochastic knapsack problem. Oper. Res. 46 17-35.
12. Kleywegt, A. J., J. D. Papastavrou. 2001. The dynamic and stochastic knapsack problem, with random sized items. Oper: Res. 49 26-41.
13. Lee, T. C., M. Hersh. 1993. A model for airline seat inventory control with multiple seat booking. Transportation Sci. 27 1252-1265.
14. Lippman, S. 1975. Applying a new device in the optimization of exponential queueing systems. Oper: Res. 23 687-710.
15. Maglaras, C., A. Zeevi. 2005. Pricing and design of differentiated services: Approximate analysis and structural insights. Oper: Res. 53 242-262.
16. Papastavrou, J. D., S. Rajagopalan, A. J. Kleywegt. 1996. The dynamic and stochastic knapsack problem, with deadlines. Management Sci. 42 1706-1718.
17. Prastacos, G. P. 1983. Optimal sequential investment decisions under conditions of uncertainty. Management Sci. 29 118-134.
18. Ross, K. W., D. Tsang. 1989. The stochastic knapsack problem. IEEE Trans. Comm. 34 47-53.
19. Ross, K. W., D. D. Yao. 1990. Monotonicity properties of the stochastic knapsack. IEEE Trans. Inform. Theory 36 1173-1179.
20. Shanthikumar, J. G., D. D. Yao. 1991. Strong stochastic convexity: Closure properties and applications. J. Appl. Probab. 28 131-145.
21. Talluri, K., G. van Ryzin. 1999. A randomized linear programming method for computing network bid prices. Transportation Sci. 33 207-216.
22. Van Slyke, R., Y. Young. 2000. Finite horizon stochastic knapsacks with applications in yield management. Oper. Res. 48 155-172.
23. Zhao, W., Y. Zheng. 2000. Optimal dynamic pricing for perishable assets with nonhomogeneous demand. Management Sci. 46 375-388.