Yield Management - Experimental Studies of Yield Management Decisions

Experimental Studies of Yield Management Decisions

Recently, people working in the area of Behavioral operations research have begun to study the yield management decisions of actual human decision makers. One question that this research addresses is how much might revenues increase if managers relied on yield management systems rather than their own judgment when making pricing decisions. Using methods from experimental economics, this work has revealed that yield management systems are likely to increase revenues significantly. Further, this research reveals that "errors" in yield management decisions tend to be quite systematic. For instance, Bearden, Murphy, and Rapoport showed that with respect to expected revenue maximizing policies, people tend to price too high when they have high levels of inventory and too low when their inventory levels are low.

Read more about this topic:  Yield Management

Famous quotes containing the words experimental, studies, yield, management and/or decisions:

    The very hope of experimental philosophy, its expectation of constructing the sciences into a true philosophy of nature, is based on induction, or, if you please, the a priori presumption, that physical causation is universal; that the constitution of nature is written in its actual manifestations, and needs only to be deciphered by experimental and inductive research; that it is not a latent invisible writing, to be brought out by the magic of mental anticipation or metaphysical mediation.
    Chauncey Wright (1830–1875)

    ...Women’s Studies can amount simply to compensatory history; too often they fail to challenge the intellectual and political structures that must be challenged if women as a group are ever to come into collective, nonexclusionary freedom.
    Adrienne Rich (b. 1929)

    Yet cease your ire, you angry stars of heaven!
    Wind, rain, and thunder, remember earthly man
    Is but a substance that must yield to you.
    William Shakespeare (1564–1616)

    The Management Area of Cherokee
    National Forest, interested in fish,
    Has mapped Tellico and Bald Rivers
    And North River, with the tributaries
    Brookshire Branch and Sugar Cove Creed:
    A fishy map for facile fishery....
    Allen Tate (1899–1979)

    Organize first for knowledge, first with the object of making us know ourselves as a nation, for we have to do that before we can be of value to other nations of the world and then organize to accomplish the things that you decide to want. And ... don’t make decisions with the interest of youth alone before you. Make your decisions because they are good for the nation as a whole.
    Eleanor Roosevelt (1884–1962)