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Introduction to the Theory and Practice of Yield Management

In general, the yield management/booking limit decision is just one aspect of a more general business question: How should a firm market and distribute goods to multiple customer segments? To answer this question, a firm must use tools for pricing and forecasting as well as for inventory management.  All of these tools are often grouped under the term revenue management, although the boundaries between yield management and revenue management are often ambiguous. In this note we will specifically focus on just a single aspect of revenue management ; yield management. 


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