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Revenue Management in Airlines and External Factors Affecting Decisions: The Harmonic Oscillator Model

Author

Listed:
  • Ivan Arraut

    (Faculty of Business and Law, University of Saint Joseph, Estrada Marginal da Ilha Verde, 14-17, Macao, China
    Ivan Arraut and Wilson Rosado contributed equally since the beginning. Victor Leong contributed on the final practical analysis.)

  • Wilson Rosado

    (Department of Physics, Universidad de Sucre, Cra. 28 No 5-267, Puerta Roja, Sincelejo-Sucre 700001, Colombia
    Ivan Arraut and Wilson Rosado contributed equally since the beginning. Victor Leong contributed on the final practical analysis.)

  • Victor Leong

    (Faculty of Business and Law, University of Saint Joseph, Estrada Marginal da Ilha Verde, 14-17, Macao, China
    Ivan Arraut and Wilson Rosado contributed equally since the beginning. Victor Leong contributed on the final practical analysis.)

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.

Suggested Citation

  • Ivan Arraut & Wilson Rosado & Victor Leong, 2024. "Revenue Management in Airlines and External Factors Affecting Decisions: The Harmonic Oscillator Model," Mathematics, MDPI, vol. 12(6), pages 1-14, March.
    • Handle: RePEc:gam:jmathe:v:12:y:2024:i:6:p:847-:d:1356789
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    References listed on IDEAS

    as
    1. E. Andrew Boyd & Ioana C. Bilegan, 2003. "Revenue Management and E-Commerce," Management Science, INFORMS, vol. 49(10), pages 1363-1386, October.
    2. Peter P. Belobaba, 1989. "OR Practice—Application of a Probabilistic Decision Model to Airline Seat Inventory Control," Operations Research, INFORMS, vol. 37(2), pages 183-197, April.
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