Callable Products with Early Exercise and Overbooking

摘要

1.Short-Terrn Benefit 1.1The provider can generate higher profit by using call options. 2.Long-Term Benefit 2.1The provider can increase lifetime customer value by serving customers better. 2.2They can reduce denied service costs and fraction of denied services. 3.Effective Conditions 3.1Higher-fare demands, especially fare-class 2 demand, are highly variable. 3.2Last booking period in which call options are not exercised is short. 3.3The fare spread is neither too small nor too large.