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Revenue Management Model for Internet Access Service  

윤문길 (한국항공대학교 경영학과)
이필환 (한국통신 e-Biz 본부)
Publication Information
Korean Management Science Review / v.19, no.1, 2002 , pp. 143-162 More about this Journal
Abstract
The concept of revenue management have been used widely In the hotel and all transportation industries, and considered as a good system for managing a perishable asset. Recently, its' application area is being increasingly expanded to service industries such as the travel, the railway, the Internet and the sport industries. Internet business can be classified into several groups according to the characteristics of the individual business. One of groups is Internet Access Servoce business which connects each users to the internet. In this paper, since internet Access Services (IAS) business has a similar property to the service Industry, we will apply a revenue management concept to It. With some modification of existing model developed by Subramanian et.al. for airlines, we suggest the revenue management model being applied to IAS business. Computational experiment shows that the Increase of the revenue Is up to 7% by appluing our model. It means our model has a potential to manage IAS business effectively.
Keywords
ISP; Revenue Management; Yield Management; Markov Decision Process;
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