Prerequisite: IE 601 and IE 611 or Instructor's Consent
Basic principles of pricing and market segmentation, cost based and market based pricing, price discrimination and product/service bundling.
Demand forecasting and demand sensing, price demand relationships.
Principles of revenue management, Littlewood’s rule, capacity and price based revenue management techniques, overbooking, network revenue, management, multi-product pricing.
Dynamic pricing, markdowns and discounts, bid-price and auction based methods.
Pricing in specific industry sectors, retail, airlines, automobiles, events, internet pricing models.
Optimization techniques, learning algorithms and other techniques for revenue management.
- Talluri, K. and G. J. van Ryzin, The Theory and Practice of Revenue Management, Kluwer, Amsterdam, 2002
- Phillips, R.L., Pricing and Revenue Optimization, Stanford University Press, Stanford, USA, 2004
- Kotler P., G. Lilien and S. Moorthy, Marketing Models, Prentice Hall, 2003
- Nagle, T.T., The Strategy and Tactics of Pricing, Prentice Hall, 2005
- Yeoman, I., Revenue Management and Pricing: Case studies and applications, International Thomson Business Press, 2004
- Ingold, A., I. Yeoman, U. McMahon (editors), Yield Management: Strategies or the Service Industries, International Thomson Business Press, 2001