Impact of penalty cost on customers' booking decisions

Impact of penalty cost on customers' booking decisions

We study a novel newsvendor-type problem where the information on demand quantity is not exogenously given. The customer needs to make the booking decision based on her estimation on demand, which is affected by the value of shortage penalty cost. The problem is motivated by low-cost airline service...

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Bibliographic Details
Main Authors: ZHANG, Jianghua, LONG, Daniel Zhuoyu, WANG, Rowan, XIE, Chi
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2021
Subjects:
Airline baggage
Weight estimation
Shortage cost
Booking allowance
Operations and Supply Chain Management
Transportation
Online Access:https://ink.library.smu.edu.sg/lkcsb_research/6681
https://ink.library.smu.edu.sg/context/lkcsb_research/article/7680/viewcontent/Impact_of_Penalty_Cost_on_Customers__Booking.pdf
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Institution: Singapore Management University
Language: English

Internet

https://ink.library.smu.edu.sg/lkcsb_research/6681
https://ink.library.smu.edu.sg/context/lkcsb_research/article/7680/viewcontent/Impact_of_Penalty_Cost_on_Customers__Booking.pdf

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