Relationships among three assumptions in revenue management
成果类型：
Article
署名作者：
Ziya, S; Ayhan, H; Foley, RD
署名单位：
University of North Carolina; University of North Carolina Chapel Hill; University System of Georgia; Georgia Institute of Technology
刊物名称：
OPERATIONS RESEARCH
ISSN/ISSBN：
0030-364X
DOI：
10.1287/opre.1040.0134
发表日期：
2004
页码：
804-809
关键词：
摘要：
This note discusses the relationships among three assumptions that appear frequently in the pricing/revenue management literature. These assumptions are mostly needed for analytical tractability, and they have the common property of ensuring a well-behaved revenue function. The three assumptions are decreasing marginal revenue with respect to demand, decreasing marginal revenue with respect to price, and increasing price elasticity of demand. We provide proofs and examples to show that none of these conditions implies any other. However, they can be ordered from strongest to weakest over restricted regions, and the ordering depends upon the region.