Abstract
In this paper, we introduce robust versions of the classical static and dynamic single-leg seat allocation models. These robust models take into account the inaccurate estimates of the underlying probability distributions. As observed by simulation experiments, it turns out that for these robust versions the variability compared to their classical counterparts is considerably reduced with a negligible decrease in average revenue.
Original language | English (US) |
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Pages (from-to) | 148-163 |
Number of pages | 16 |
Journal | Management Science |
Volume | 55 |
Issue number | 1 |
DOIs | |
State | Published - Jan 1 2009 |
Keywords
- Airline revenue management
- Dynamic models
- Robust optimization
- Single-leg problems
- Static models