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Essay text:
The procedure for doing this is necessarily time-based since the market segments are differ entiated also by the timing of bookings relative to a rental date. The procedure for making the pricing decisions is de scribed and an example is given. Unlike the commonly in voked marginal revenue models, this model is optimal and requires fewer assumptions about the demand process. It is shown that the procedure has rather modest information re quirements and is based on data that is typically available through market research. We also show that the procedure demands minimal amounts of CPU time making it applicable even in small hotels...
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