The Customer Valuations Game as a Basis for Teaching Revenue Management

Kalyan Talluri - kalyan.talluri@upf.edu
ICREA and Universitat Pompeu Fabra, 08005 Barcelona, Spain

Abstract

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.

Key words
revenue management; teaching; valuations

History
Received: May 2008; accepted: December 2008. This paper was with the authors 3 months for 2 revisions.

Download the PDF
pdf 10.1287/ited.9.3.117

Citation Information
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/.

DOI: 10.1287/ited.1090.0029

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