Pricing and Revenue Optimization: Second Edition

Robert L. Phillips

Published by Stanford University Press 2021

Pricing and Revenue Optimization

Second Edition

Robert L. Phillips

https://doi.org/10.1515/9781503614260

Overview
Contents

About this book

This book offers the first introduction to the concepts, theories, and applications of pricing and revenue optimization. From the initial success of "yield management" in the commercial airline industry down to more recent successes of markdown management and dynamic pricing, the application of mathematical analysis to optimize pricing has become increasingly important across many different industries. But, since pricing and revenue optimization has involved the use of sophisticated mathematical techniques, the topic has remained largely inaccessible to students and the typical manager. With methods proven in the MBA courses taught by the author at Columbia and Stanford Business Schools, this book presents the basic concepts of pricing and revenue optimization in a form accessible to MBA students, MS students, and advanced undergraduates. In addition, managers will find the practical approach to the issue of pricing and revenue optimization invaluable.

With updates to every chapter, this second edition covers topics such as estimation of price-response functions and machine-learning-based price optimization. New discussions of applications of dynamic pricing and revenue management by companies such as Amazon, Uber, and Disney, and in industries such as sports, theater, and electric power, are also included. In addition, the book provides current coverage of important applications such as revenue management, markdown management, customized pricing, and the behavioral economics of pricing.

Author / Editor information

Robert L. Phillips is Director of Pricing Science at Amazon. He was previously Director of Marketplace Optimization Data Science at Uber Technologies, Professor of Professional Practice at Columbia Business School, Founder and Chief Science Officer at Nomis Solutions, and CEO of Talus Solutions. He is the author of Pricing Credit Products (Stanford, 2018) and the co-editor of The Oxford Handbook of Pricing Management (2014).

Reviews

Gabriel Weintraub:
"Bob Phillips is one of the world's experts on quantitative pricing. This unique book translates state-of-the-art academic research into practical managerial lessons. Covering a wide range of industries that go from revenue management classics such as hotels and airlines all the way to modern e-commerce and ride-sharing platforms, this book is a must have for every pricing manager."

Guillermo Gallego, Crown Worldwide Professor of Engineering:
"Benefiting from Bob's rich industry experience and superb writing skills, this book exposes the reader to a host of real-world applications that blend modelling, optimization, and machine learning in a gentle and accessible way. Describing new developments in e-commerce, ride sharing and reinforced learning, this is a must-read book for students and professionals in the field."

Wei Ke:
"This book is a must-read for students and practitioners of pricing modeling, offering a clear guide on where and how to apply which pricing model framework. With the updates made to the 2nd edition, its comprehensiveness in covering the pricing modeling topic is second to none!"

Topics

Frontmatter Publicly Available Download PDF	i
Contents Publicly Available Download PDF	v
Preface to the Second Edition Publicly Available Download PDF	xi
1 Background Requires Authentication Unlicensed Licensed Download PDF	1
2 Introduction to Pricing and Revenue Optimization Requires Authentication Unlicensed Licensed Download PDF	20
3 Models of Demand Requires Authentication Unlicensed Licensed Download PDF	42
4 Estimating Price Response Requires Authentication Unlicensed Licensed Download PDF	66
5 Optimization Requires Authentication Unlicensed Licensed Download PDF	93
6 Price Differentiation Requires Authentication Unlicensed Licensed Download PDF	120
7 Pricing with Constrained Supply Requires Authentication Unlicensed Licensed Download PDF	151
8 Revenue Management Requires Authentication Unlicensed Licensed Download PDF	180
9 Capacity Allocation Requires Authentication Unlicensed Licensed Download PDF	207
10 Network Manageme Requires Authentication Unlicensed Licensed Download PDF	241
11 Overbooking Requires Authentication Unlicensed Licensed Download PDF	273
12 Markdown Management Requires Authentication Unlicensed Licensed Download PDF	307
13 Customized Pricing Requires Authentication Unlicensed Licensed Download PDF	340
14 Behavioral Economics and Pricing Requires Authentication Unlicensed Licensed Download PDF	379
Appendix A optimization Requires Authentication Unlicensed Licensed Download PDF	407
Appendix B probability Requires Authentication Unlicensed Licensed Download PDF	417
References Requires Authentication Unlicensed Licensed Download PDF	429
Index Requires Authentication Unlicensed Licensed Download PDF	443

Language: English
Publisher: Stanford University Press
Audience: Professional and scholarly;
Pages
- Main content: 472
Illustrations
- Illustrations: 88
Keywords: Pricing; revenue management; pricing optimization; promotions; markdowns; marketing; segmentation

eBook

Published: May 18, 2021
ISBN: 9781503614260