A Note on State-Independent Policies in Network Revenue Management

Abstract

For a variety of practical reasons, including ease of understanding and familiarity for customers, firms use static-pricing algorithms in which product prices remain unchanged over time. In a multiproduct setting with no demand substitutability or complementarity between products, prior work has shown that static-pricing algorithms can offer excellent performance. In “A Note on State-Independent Policies in Network Revenue Management,” Manchiraju, Dawande, and Janakiraman extend that work and show that static-pricing algorithms offer a near-optimal performance even in the presence of demand substitutability and complementarity.