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• W2054918418 abstract "Low-cost providers have emerged as important players in many service industries, the most predominant being low-cost, or the so-called discount airlines. This paper presents models and results leading toward understanding the revenue management outlook for a discount pricing firm. A framework and model is formulated specifically for the airline industry, but is generalizable to low-cost providers in similar revenue management settings. We formulate an optimal pricing control model for a firm that must underprice to capture a segment of exogenous demand. Two specific model formulations are considered: a continuous deterministic version, and a discrete stochastic version. Structural results are derived for the deterministic case, providing insight into the general form of optimal underpricing policies. The stochastic results support the structural insight from the deterministic solution, and illuminate the effect of randomness on the underpricing policies." @default.
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• W2054918418 date "2008-07-01" @default.
• W2054918418 modified "2023-09-23" @default.
• W2054918418 title "Revenue management for low-cost providers" @default.
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• W2054918418 doi "https://doi.org/10.1016/j.ejor.2007.04.010" @default.
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