ORIE 6154 - Pricing and Revenue Management



Course Description

Revenue Management — “the art and science of selling the right product to the right customer at the right time for the right price “ — is one of the youngest, and yet, most influential disciplines of Operations Research. It combines together probabilistic modeling, optimization techniques and data analytics to determine how different firms should make capacity and price decisions. The field is based on a well-developed body of research, which has proved successful in practice across many industries; simultaneously however, with the advent of online commerce and increased use of smartphones, it is in the process of undergoing rapid transformation.

The goal of this course is to provide an introduction to the theory and practice of revenue management, and also provide a glimpse of the frontiers of the field.

  • Course Syllabus: pdf

Course Information

  • Lectures: TR 1.25pm-2.40pm, Philips 307, Map
  • Office hours: W 2pm-4pm, Rhodes 229
  • Instructor: Siddhartha Banerjee, 229 Rhodes Hall, email

Lectures

Assignments

  • Homework 1 (Due in class on Thursday, 22nd September)

References

There is no required textbook for the course; however, the following textbook is a great reference for many of the topics we will cover:

The Cornell library gives you access to an online version of the books.

Our focus in the course will be primarily on the theoretical foundations of RM; however the following textbooks are a great resource for students interested in reading more about applications of revenue management, and related issues:

  • Pricing and Revenue Optimization by Robert Phillips: This covers much of the same material but from a less technical perspective.
  • Principles of Pricing by Vohra and Krishnamurthi: This looks at pricing from a more economics perspective, and serves as a nice counterpoint to the topics we will study.

For more recent material, I will maintain a list of papers -- some of these we will cover in class, while others can serve as a starting point for projects. The list will be maintained on a shared document, and students are encouraged to contribute to the list.

The course will draw extensively on earlier versions of this course taught by Huseyin Topaloglu at Cornell, and also a related course taught by Kostas Bimpikis at Stanford; some material related these courses may be uploaded on Blackboard as the semester progresses.