We formulate and analyze a Markov decision process (dynamic programming) model for airline seat allocation (yield management) on a single-leg flight with multiple fare classes. Unlike previous models, we allow cancellation, no-shows, and overbooking. Additionally, we make no assumptions on the arrival patterns for the various fare classes. Our model is also… (More)
We review models for the optimal control of networks of queues, Our main emphasis is on models based on Markov decision theory and the characterization of the structure of optimal control policies.
We consider a discrete-time Markov decision process with a partially ordered state space and two feasible control actions in each state. Our goal is to nd general conditions, which are satissed in a broad class of applications to control of queues, under which an optimal control policy is monotonic. An advantage of our approach is that it easily extends to… (More)