Abstract
We study a mathematical model for revenue management under competitions 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.
Recommended Citation
Lu, Yingdong
(2021).
A Stochastic Knapsack Game: Revenue Management in Competitions,
Applications and Applied Mathematics: An International Journal (AAM), Vol. 16,
Iss.
1, Article 1.
Available at:
https://digitalcommons.pvamu.edu/aam/vol16/iss1/1