The Customer Valuations Game as a Basis for Revenue Management

11 Pages Posted: 8 Apr 2009

See all articles by Kalyan Talluri

Kalyan Talluri

Imperial College Business School

Date Written: December 22, 2008

Abstract

I describe the customer valuations game, a simple intuitive game that can serve as a foundation for teaching revenue management. The game requires little or no preparation, props or software, takes around two hours (and hence can be finished in one session), and illustrates the formation of classical (airline and hotel) revenue management mechanisms such as advanced purchase discounts, booking limits and fixed multiple prices. I normally use the game as a base to introduce RM and to develop RM forecasting and optimization concepts off it. The game is particularly suited for non-technical audiences.

Keywords: Revenue management, teaching, valuations

JEL Classification: C61, L93, L83, M11

Suggested Citation

Talluri, Kalyan, The Customer Valuations Game as a Basis for Revenue Management (December 22, 2008). Available at SSRN: https://ssrn.com/abstract=1374852 or http://dx.doi.org/10.2139/ssrn.1374852

Kalyan Talluri (Contact Author)

Imperial College Business School ( email )

387A Business School
South Kensington Campus
London, London SW7 2AZ
United Kingdom
+44 (0)20 7594 1233 (Phone)

HOME PAGE: http://https://www.imperial.ac.uk/people/kalyan.talluri

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