What Multistage Stochastic Programming Can Do for Network Revenue Management

@inproceedings{Mishra2006WhatMS,
  title={What Multistage Stochastic Programming Can Do for Network Revenue Management},
  author={Victor DeMiguel Nishant Mishra},
  year={2006}
}
  • Victor DeMiguel Nishant Mishra
  • Published 2006
Airlines must dynamically choose how to allocate their flight capacity to incoming travel demand. Because some passengers take connecting flights, the decisions for all network flights must be made simultaneously. To simplify the decision making process, most practitioners assume demand is deterministic and equal to average demand. We propose a multistage stochastic programming approach that models demand via a scenario tree and can accommodate any discrete demand distribution. This approach… CONTINUE READING