Course Detail

Revenue Management (40108)

Course Description by Faculty

  • Caldentey, Rene
  • Content
    This course will focus on the identification, formulation, solution, and implementation of systems for pricing and revenue optimization. The course will develop fundamental understanding of the use of pricing and capacity concepts combined with optimization tools to achieve revenue improvement within the practical context of limited resources and information. Case examples from a variety of industries including airlines, hotels, car rental agencies, internet/media advertising, entertainment, retailing, energy, commodities, freight, and manufacturing will be used to develop skills in designing and implementing solutions in different environments.

    Students will learn how to recognize opportunities for revenue enhancement; how to differentiate among types of opportunities; how to segment markets while incorporating constrained capacity, opportunity costs, customer and competitor response, demand and supply uncertainty, and information infrastructure; how to formulate and solve for revenue management decisions using constrained optimization; and how to define overall implementation requirements.

  • Prerequisites
    Business 33001 and 41000 (or 41100). No non-Booth students.
    • No non-Booth Students

  • Materials
    The course will use the text, Pricing and Revenue Optimization, by R. Phillips, Stanford, 2005, plus cases, readings, and lecture notes. The course will rely heavily on the use of the Solver in Microsoft Excel.
  • Grades
    Based on homework, case summaries, mid-term, final exam and participation. No pass/fail grades. No auditors.
    • No auditors

    • No pass/fail grades

  • Syllabus
  • Spring 2023Section: 40108-01F 8:30AM-11:30AMHarper CenterC09In-Person Only
Description and/or course criteria last updated: June 8 2022