Related papers: Heterogeneity in demand and optimal price conditio…
We develop a new identification strategy for demand estimation when cost shifters may not be available and there are substantial variations in demand over time. This approaches relies on a kind of nonlinear difference-in-differences, in…
This paper examines empirical methods for estimating the response of aggregated electricity demand to high-frequency price signals, the short-term elasticity of electricity demand. We investigate how the endogeneity of prices and the…
The relationship between demand and prices of a set of products can be modeled as a linear mapping from logarithmic price changes to logarithmic changes in demand. We consider the problem of estimating the coefficient matrix of this…
This paper presents a model addressing welfare optimal policies of demand responsive transportation service, where passengers cause external travel time costs for other passengers due to the route changes. Optimal pricing and trip…
Demand estimation plays an important role in dynamic pricing where the optimal price can be obtained via maximizing the revenue based on the demand curve. In online hotel booking platform, the demand or occupancy of rooms varies across…
Urban metro and tram networks are regularly subject to planned disruptions, including closures, resulting from the need to maintain and renew infrastructure. In this study, we first empirically analyse the passenger demand response to…
There is an opportunity in modern power systems to explore the demand flexibility by incentivizing consumers with dynamic prices. In this paper, we quantify demand flexibility using an efficient tool called time-varying elasticity, whose…
The rise in urbanization throughout the United States (US) in recent years has required urban planners and transportation engineers to have greater consideration for the transportation services available to residents of a metropolitan…
The design of integrated mobility-on-demand services requires jointly considering the interactions between traveler choice behavior and operators' operation policies to design a financially sustainable pricing scheme. However, most existing…
We study common properties of retail pricing models within a general framework of calculus of variations. In particular, we observe that for any demand model, optimal de-seasoned revenue rate divided by price elasticity is time invariant.…
We consider the problem of designing prices for public transport where payment enforcing is done through random inspection of passengers' tickets as opposed to physically blocking their access. Passengers are fully strategic such that they…
Growth in leisure travel has become increasingly significant economically, socially, and environmentally. However, flexible but uncoordinated travel behaviors exacerbate traffic congestion. Mobile phone records not only reveal human…
We study a problem of an online retailer who observes the unit sales of a product, and dynamically changes the retail price, in order to maximize the expected revenue. Assuming the demand of the product is price sensitive, we are interested…
The intelligent upgrading of metropolitan rail transit systems has made it feasible to implement demand-side management policies that integrate multiple operational strategies in practical operations. However, the tight interdependence…
Public transit systems in urban areas usually require large state subsidies, primarily due to high fare evasion rates. In this paper, we study new models for optimizing fare inspection strategies in transit networks based on bilevel…
Price elasticity model (PEM) is an appealing and modest model for assessing the potential of flexible demand in DR. It measures the customers demand sensitivity through elasticity in relation to price variation. However, application of PEM…
Line planning in public transport is the strategic problem of selecting lines and their operating frequencies. This problem is important as it defines the passenger service, based on available connections and expected travel times, and…
Dynamic pricing is commonly used to regulate congestion in shared service systems. This paper is motivated by the fact that in the presence of users with varying price sensitivity (responsiveness), conventional monotonic pricing can lead to…
This paper provides a framework to quantify the sensitivity associated with behavioral models based on Cumulative Prospect Theory (CPT). These are used to design dynamic pricing strategies aimed at maximizing performance metrics of the…
Railway scheduling and timetabling are common stages in the classical hierarchical railway planning process and they perhaps represent the step with major influence on user's perception about quality of service. This aspect, in conjunction…