The Customer Valuations Game as a Basis for Teaching Revenue Management
Kalyan Talluri - email@example.com
ICREA and Universitat Pompeu Fabra, 08005 Barcelona, Spain
I describe the customer valuations game, a simple intuitive game that can serve as a foundation for teaching revenue management. The game requires little or no preparation, props, or software; takes about two hours to play (and hence can be finished in one session); and illustrates the formation of classical (airline and hotel) revenue management mechanisms such as advanced purchase discounts, booking limits, and fixed multiple prices. I use the game to introduce revenue management and to develop revenue management forecasting and optimization concepts stemming from it. The game is particularly suited for nontechnical audiences.
revenue management; teaching; valuations
Received: May 2008; accepted: December 2008. This paper was with the authors 3 months for 2 revisions.
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Talluri, K. 2009. The Customer Valuations Game as a Basis for Teaching Revenue Management. INFORMS Trans. Ed. 9(3) 117-123. Available online at http://ite.pubs.informs.org/.