Fairness-aware Network Revenue Management with Demand Learning

07/22/2022
by   Xi Chen, et al.
2

In addition to maximizing the total revenue, decision-makers in lots of industries would like to guarantee fair consumption across different resources and avoid saturating certain resources. Motivated by these practical needs, this paper studies the price-based network revenue management problem with both demand learning and fairness concern about the consumption across different resources. We introduce the regularized revenue, i.e., the total revenue with a fairness regularization, as our objective to incorporate fairness into the revenue maximization goal. We propose a primal-dual-type online policy with the Upper-Confidence-Bound (UCB) demand learning method to maximize the regularized revenue. We adopt several innovative techniques to make our algorithm a unified and computationally efficient framework for the continuous price set and a wide class of fairness regularizers. Our algorithm achieves a worst-case regret of Õ(N^5/2√(T)), where N denotes the number of products and T denotes the number of time periods. Numerical experiments in a few NRM examples demonstrate the effectiveness of our algorithm for balancing revenue and fairness.

READ FULL TEXT

page 1

page 2

page 3

page 4

research
11/16/2021

Fairness-aware Online Price Discrimination with Nonparametric Demand Models

Price discrimination, which refers to the strategy of setting different ...
research
11/04/2019

Network Revenue Management with Limited Switches: Known and Unknown Demand Distributions

This work is motivated by a practical concern from our retail partner. W...
research
03/21/2022

Optimizing Revenue Maximization and Demand Learning in Airline Revenue Management

Correctly estimating how demand respond to prices is fundamental for air...
research
05/02/2020

Online Learning and Optimization for Revenue Management Problems with Add-on Discounts

We study in this paper a revenue management problem with add-on discount...
research
10/14/2022

Degeneracy is OK: Logarithmic Regret for Network Revenue Management with Indiscrete Distributions

We study the classical Network Revenue Management (NRM) problem with acc...
research
02/18/2022

Single-Leg Revenue Management with Advice

Single-leg revenue management is a foundational problem of revenue manag...
research
10/25/2018

On Policies for Single-leg Revenue Management with Limited Demand Information

In this paper we study the single-leg revenue management problem, with n...

Please sign up or login with your details

Forgot password? Click here to reset