| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 1143136 | Operations Research Letters | 2012 | 6 Pages |
Abstract
We study casino revenue management through the pricing of hotel rooms in the presence of gaming revenue, which is random. We identify a stochastic order based on customers’ gaming profiles, from which a monotonic inventory price of rooms is obtained. We develop a threshold-type pricing policy for a special customer segmentation scheme that allows customers’ winning profiles to be ranked in terms of the failure rate order. Our results shed new light on customer valuation and market segmentation.
Keywords
Related Topics
Physical Sciences and Engineering
Mathematics
Discrete Mathematics and Combinatorics
Authors
Weifen Zhuang, Michael Z.F. Li,