Network Revenue Management with Limited Switches: Known and Unknown Demand Distributions
share
This work is motivated by a practical concern from our retail partner. While they respect the advantages of dynamic pricing, they must limit the number of price changes to be within some constant. We study the classical price-based network revenue management problem, where a retailer has finite initial inventory of multiple resources to sell over a finite time horizon. We consider both known and unknown distribution settings, and derive policies that have the best-possible asymptotic performance in both settings. Our results suggest an intrinsic difference between the expected revenue associated with how many switches are allowed, which further depends on the number of resources. Our results are also the first to show a separation between the regret bounds associated with different number of resources.
READ FULL TEXT
