Capacitated Network Revenue Management through Shadow Pricing

摘要

In this paper, we analyze a method that links Lagrange multipliers from a resource allocation problem to the problem of revenue or profit maximization. This technique, first proposed in the transportation science literature by has important implications for telecommunication network pricing. Indeed, the framework provides a generalization of telecommunication resource allocation/shadow price-based schemes such as those of and, in that it permits the optimization of the shadow prices themselves, through a computationally simple procedure. We analyze the extent to which revenue can be maximized on a network that uses shadow-price-based prices, and how to deal with cases of unbounded multipliers.