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Cluster :  Tutorials

Session Information  : Sunday Nov 05, 10:00 - 11:30

Title:  Tutorial: A Practical Approach to Pricing Optimization

Abstract Details

Title: A Practical Approach to Pricing Optimization
 Presenting Author: Maarten Oosten,Senior Director of Science and Research, PROS Revenue Management, 3100 Main Street, Suite 900, Houston TX 77002, moosten@prospricing.com
 Co-Author: Darius Walczak,Senior Scientist, PROS RM, 3100 Main Street, Suite 900, Houston TX 77002, United States, dwalczak@prospricing.com
 
Abstract: Pricing optimization generalizes traditional revenue management in that demand need not be independent across products. We define pricing optimization for multiple products facing stochastic demand over a finite time horizon. We address static controls (e.g. LP) as well as dynamic controls. We demonstrate equivalencies between general pricing formulations and traditional revenue management models, and highlight economic and managerial insights. Finally, we address some practical issues, and highlight challenges and open research problems.