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arXiv · 1909.04609

A Stochastic Knapsack Game: Revenue Management in Competitions

Yingdong Lu
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Abstract

We study a mathematical model for revenue management under competition with multiple sellers. The model combines the stochastic knapsack problem, a classic revenue management model, with a non coorperative game model that characterizes the sellers' rational behavior. We are able to establish a dynamic recursive procedure that incorporate the value function with the utility function of the games. The formalization of the dynamic recursion allows us to establish some fundamental structural properties.

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Yingdong Lu. 2019-09-10. A Stochastic Knapsack Game: Revenue Management in Competitions. https://arxiv.org/abs/1909.04609

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