REVENUE MANAGEMENT IN AIRLINES AND EXTERNAL FACTORS AFFECTING DECISIONS: THE HARMONIC OSCILLATOR MODEL

Abstract

THE REVENUE MANAGEMENT (RM) PROBLEM IN AIRLINES FOR A FIXED CAPACITY, SINGLE RESOURCE AND TWO CLASSES HAS BEEN SOLVED BEFORE BY USING A STANDARD FORMALISM. IN THIS PAPER WE PROPOSE A MODEL FOR RM BY USING THE SEMI-CLASSICAL APPROACH OF THE QUANTUM HARMONIC OSCILLATOR. WE THEN EXTEND THE MODEL TO INCLUDE EXTERNAL FACTORS AFFECTING THE PEOPLE’S DECISIONS, PARTICULARLY THOSE WHERE COLLECTIVE DECISIONS EMERGE.