Title: A mathematical framework for revenue management

In an industry where unsold services are lost, Revenue Management consists in setting the right price for the right customer at the right time. While this does not sound very exciting from a mathematical point of view, there are many challenging issues attached to this pricing problem, either from the modelling, theoretical or numerical point of view. In this presentation, we focus on a large-scale bilevel programming framework for Revenue Optimization in the airline industry. At the upper level, an airline sets a price schedule that takes into account the reaction of customers to the overall supply for air transportation. Three key features of the model are
(i) the segmentation of the demand markets according to user preferrences
(ii) a parameter estimation procedure based on inverse bilevel optimization
(iii) its underlying network structure.