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Pricing and availability of tickets have always been a source of confusion for customers in transportation industries. What is the best time to buy tickets? Why passengers taking the same flight might pay significantly different prices for the same seat? Why round trip tickets between two cities sometimes become cheaper than the one-way flights between them? Is it fair to buy a ticket for an itinerary cheaper than a ticket for just a part of it? These observations make customers wonder why they pay higher prices for shorter flights. In this paper, we study the airlines' revenue management systems and explain some of these pricing schemes in travel industries. We develop a simulator to study... 

Bundling has been extensively studied in the literature and its benefits have been manifested through three perspectives of achieving better price discrimination, helping to save costs, and preserving the power for deterring a potential entrant. In this study, we examine two aspects of bundling which have not been studied before. We examine the impact of product heterogeneity on bundling decisions. We also address risk considerations in a bundling problem. Specifically, we consider a retailer who has the option of selling a bundle of two products (pure bundling policy), or selling the products separately (no-bundling policy). The retailer could also face a product selection problem for which... 

We study the optimal pricing strategy for profit maximization in presence of network externalities where a decision to buy a product depends on the price offered to the buyer and also on the set of her friends who have already bought that product. We model the network influences by a weighted graph where the utility of each buyer is the sum of her initial value on the product, and the linearly additive influence from her friends. We assume that the buyers arrive online and the seller should offer a price to each buyer when she enters the market. We also take into account the manufacturing cost. In this paper, we first assume that the monopolist defines a unique price for the product and... 

Instead of charging tolls on individual links, this paper considers doing the same on paths. Path and link tolls are "valid" if they encourage motorists to use routes that collectively lead to a target distribution, e.g., one that minimizes travel delay. Because the numbers of valid link and path tolls are typically infinite, an objective in pricing tolls is to find a set of valid tolls that yields the least revenue to lessen the financial burden on motorists.Path tolls are generally more flexible than link tolls and this paper shows that this flexibility can substantially reduce the financial burden on motorists. Additionally, valid path tolls yielding the least revenue possess...