Dynamic pricing for airline revenue management under passenger mental accounting
type: Item
instance of: scholarly article
title: Dynamic pricing for airline revenue management under passenger mental accounting
zbMATH Open document ID: 1394.91089
DOI: 10.1155/2015/836434
author: Yusheng Hu
author: Jinlin Li
author: Lun Ran
published in: Mathematical Problems in Engineering
publication date: 2018-08-27T00:00:00Z
review text: Summary: Mental accounting is a far-reaching concept, which is often used to explain various kinds of irrational behaviors in human decision making process. This paper investigates dynamic pricing problems for single-flight and multiple flights settings, respectively, where passengers may be affected by mental accounting. We analyze dynamic pricing problems by means of the dynamic programming method and obtain the optimal pricing strategies. Further, we analytically show that the passenger mental accounting depth has a positive effect on the flight's expected revenue for the single flight and numerically illustrate that the passenger mental accounting depth has a positive effect on the optimal prices for the multiple flights.
Mathematics Subject Classification ID: 91B06
zbMATH DE Number: 6927352
Wikidata QID: Q59119611
MaRDI profile type: Publication
full work available at URL: https://doi.org/10.1155/2015/836434
OpenAlex ID: W2075101806
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description: scientific article; zbMATH DE number 6927352