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dc.contributor.advisorPeter Paul Belobaba.en_US
dc.contributor.authorDiwan, Sarveeen_US
dc.contributor.otherMassachusetts Institute of Technology. Operations Research Center.en_US
dc.date.accessioned2011-03-07T15:15:48Z
dc.date.available2011-03-07T15:15:48Z
dc.date.copyright2010en_US
dc.date.issued2010en_US
dc.identifier.urihttp://hdl.handle.net/1721.1/61564
dc.descriptionThesis (S.M. in Transportation)--Massachusetts Institute of Technology, Dept. of Civil and Environmental Engineering; and, (S.M.)--Massachusetts Institute of Technology, Sloan School of Management, Operations Research Center, 2010.en_US
dc.descriptionCataloged from PDF version of thesis.en_US
dc.descriptionIncludes bibliographical references (p. 159-163).en_US
dc.description.abstractThis thesis evaluates the performance of Dynamic Programming (DP) models as applied to airline Revenue Management (RM) compared to traditional Revenue Management models like EMSRb as DP models offer a theoretically attractive alternative to traditional RM models. In the first part of this thesis, we develop a simplified simulator to evaluate the effects of changing demand variance on the performance of standard DP on a single flight leg. This simulator excludes the effects of forecast quality and competitive effects like passenger sell-up and inter-airline spill. In the next part of the thesis, we introduce two network based DP methods that incorporate the network displacement costs in the standard DP based optimizer and perform simulation experiments in a larger competitive network using the Passenger Origin Destination Simulator to study the performance of DP methods in airline Revenue Management systems. The results of single flight leg experiments from the simplified simulator show that DP methods do not consistently outperform EMSRb and the sensitivity analysis show that the performance of DP relative to EMSRb depends on the demand variability, demand factor, fare ratios and passenger arrival pattern. The results from the PODS competitive network simulations show that DP methods, despite not showing any significant benefits in the simplified simulator, can outperform EMSRb when used in a competitive environment because DP's aggressive seat protection policy helps DP generate more revenues than EMSRb due to competitive feedback effects like inter-airline passenger spill-in, and passenger sell-up within the airline.en_US
dc.description.statementofresponsibilityby Sarvee Diwan.en_US
dc.format.extent163 p.en_US
dc.language.isoengen_US
dc.publisherMassachusetts Institute of Technologyen_US
dc.rightsM.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.en_US
dc.rights.urihttp://dspace.mit.edu/handle/1721.1/7582en_US
dc.subjectCivil and Environmental Engineering.en_US
dc.subjectOperations Research Center.en_US
dc.titlePerformance of Dynamic Programming methods in airline Revenue Managementen_US
dc.title.alternativePerformance of DP methods in airline RMen_US
dc.typeThesisen_US
dc.description.degreeS.M.en_US
dc.description.degreeS.M.in Transportationen_US
dc.contributor.departmentMassachusetts Institute of Technology. Department of Civil and Environmental Engineering
dc.contributor.departmentMassachusetts Institute of Technology. Operations Research Center
dc.contributor.departmentSloan School of Management
dc.identifier.oclc703219676en_US


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