In a revenue management model, dual prices tell reservation agents the revenue loss associated with overbooking each ODIF.

Name: In a revenue management model, dual prices tell reservation agents the revenue loss associated with overbooking each ODIF.
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Question

Quizplus · Accepted Answer

Dual prices in a revenue management model indicate the marginal value of capacity, not the revenue loss associated with overbooking. They help in understanding the opportunity cost of using capacity for one segment over another.

In a Revenue Management Model, Dual Prices Tell Reservation Agents