Fall 2003

ME/IE 8773-8774

Towards Choice-Based Revenue Management

by

Garrett J. van Ryzin
Paul M. Montrone Professor of Private Enterprise
Decision, Risk and Operations Divison
Columbia Graduate School of Business
Columbia University

Wednesday, November 19, 2003
3:30-5:00 p.m.
Room 1130 ME
Coffee and cookies will be available at 3:15 p.m. before and after the seminar

Using consumer choice models as a basis for revenue management (RM) is appealing on many levels. Choice models can naturally model important buy-up and diversion phenomenon and can be applied to newer, undifferentiated low-fare structures and dynamic pricing problems. Yet despite its potential, choice-based RM is a significant departure from current practice and the task of revamping RM technology to incorporate choice models has been a challenging prospect. However, recent research advances have now brought choice-based RM within striking distance of being practical. In this talk, we survey the recent research results in this area and discuss their implications for RM research and practice.
Garrett van Ryzin is the Paul M. Montrone Professor of Private Enterprise, in the Decision, Risk and Operations Division, at the Columbia University Graduate School of Business. His research interests include stochastic optimization, pricing and revenue management and supply chain management. He is co-author (with Kalyan Talluri) of the forthcoming book, The Theory and Practice of Revenue Management and is Editor in Chief of M&SOM. He received the B.S.E.E. degree from Columbia University, and the degrees of S.M. (E.E.C.S.) and Ph.D. in Operations Research from MIT.

Informal Faculty Luncheon: Thursday,November 19, 2003, 12:00 noon. Meet in 1100 ME and walk to lunch with other faculty. Prof. van Ryzin will be able to attend.