Strategic Service Pricing and Yield Management
Posted: 7 Jan 2009
Date Written: January 1, 1999
Abstract
We investigate pricing strategies based on yield management systems (YMS), such as early discounting, overbooking and limiting early sales, for capacity-constrained services. We find that YMS work best when price insensitive customers prefer to buy later than price sensitive consumers. We also identify other conditions favoring the use of YMS. January 1999 under review Journal of Marketing.
Keywords: yield management, dynamic heterogeneity, dynamic pricing, revenue management, capacity control
JEL Classification: C60, D40, D42, M30, D24
Suggested Citation: Suggested Citation
Desiraju, Ramarao and Shugan, Steven M., Strategic Service Pricing and Yield Management (January 1, 1999). Available at SSRN: https://ssrn.com/abstract=1324124
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