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.
A Stochastic Knapsack Game: Revenue Management in Competitions,
Applications and Applied Mathematics: An International Journal (AAM), Vol. 16,
1, Article 1.
Available at: https://digitalcommons.pvamu.edu/aam/vol16/iss1/1