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:
“Whenever a man acts purposively, he acts under a belief in some experimental phenomenon. Consequently, the sum of the experimental phenomena that a proposition implies makes up its entire bearing upon human conduct.”
—Charles Sanders Peirce (1839–1914)
“...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)
“This we take it is the grand characteristic of our age. By our skill in Mechanism, it has come to pass, that in the management of external things we excel all other ages; while in whatever respects the pure moral nature, in true dignity of soul and character, we are perhaps inferior to most civilised ages.”
—Thomas Carlyle (1795–1881)
“The great questions of the day will not be settled by means of speeches and majority decisions ... but by iron and blood.”
—Otto Von Bismarck (1815–1898)