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Revenue management and the railway conundrum – The consequences of reference prices in passenger railway transport practice

Research output: Contribution to Journal/Magazine › Journal article › peer-review

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Revenue management and the railway conundrum – The consequences of reference prices in passenger railway transport practice. / Kellermann, Norman; Cleophas, Catherine.
In: Journal of Revenue and Pricing Management, Vol. 14, No. 3, 06.2015, p. 155-165.

Research output: Contribution to Journal/Magazine › Journal article › peer-review

Harvard

Kellermann, N & Cleophas, C 2015, 'Revenue management and the railway conundrum – The consequences of reference prices in passenger railway transport practice', Journal of Revenue and Pricing Management, vol. 14, no. 3, pp. 155-165. https://doi.org/10.1057/rpm.2015.9

APA

Kellermann, N., & Cleophas, C. (2015). Revenue management and the railway conundrum – The consequences of reference prices in passenger railway transport practice. Journal of Revenue and Pricing Management, 14(3), 155-165. https://doi.org/10.1057/rpm.2015.9

Vancouver

Kellermann N, Cleophas C. Revenue management and the railway conundrum – The consequences of reference prices in passenger railway transport practice. Journal of Revenue and Pricing Management. 2015 Jun;14(3):155-165. Epub 2015 Apr 24. doi: 10.1057/rpm.2015.9

Author

Kellermann, Norman ; Cleophas, Catherine. / Revenue management and the railway conundrum – The consequences of reference prices in passenger railway transport practice. In: Journal of Revenue and Pricing Management. 2015 ; Vol. 14, No. 3. pp. 155-165.

Bibtex

@article{e0a8f1b31e7b4d79ba492ba072c825f5,
title = "Revenue management and the railway conundrum – The consequences of reference prices in passenger railway transport practice",
abstract = "While railway transport appears well suited to revenue management (RM), establishing it in practice appears difficult. To explain this, we investigate the long-term consequences of repeated transactions and reference pricing. We consider the implications of reference pricing based on an agent-based simulation of passenger railway RM. The model is empirically calibrated using data provided by a European long-distance railway operator. On the long term, reducing fares to induce additional demand can foil revenue gains when customers learn and communicate reference prices. Accordingly, knowing customers' tendency to build reference prices becomes crucial.",
keywords = "reference prices , railway revenue management, Prospect Theory, learning customer behaviour, simulation",
author = "Norman Kellermann and Catherine Cleophas",
year = "2015",
month = jun,
doi = "10.1057/rpm.2015.9",
language = "English",
volume = "14",
pages = "155--165",
journal = "Journal of Revenue and Pricing Management",
issn = "1476-6930",
publisher = "Palgrave Macmillan Ltd.",
number = "3",

}

RIS

TY - JOUR

T1 - Revenue management and the railway conundrum – The consequences of reference prices in passenger railway transport practice

AU - Kellermann, Norman

AU - Cleophas, Catherine

PY - 2015/6

Y1 - 2015/6

N2 - While railway transport appears well suited to revenue management (RM), establishing it in practice appears difficult. To explain this, we investigate the long-term consequences of repeated transactions and reference pricing. We consider the implications of reference pricing based on an agent-based simulation of passenger railway RM. The model is empirically calibrated using data provided by a European long-distance railway operator. On the long term, reducing fares to induce additional demand can foil revenue gains when customers learn and communicate reference prices. Accordingly, knowing customers' tendency to build reference prices becomes crucial.

AB - While railway transport appears well suited to revenue management (RM), establishing it in practice appears difficult. To explain this, we investigate the long-term consequences of repeated transactions and reference pricing. We consider the implications of reference pricing based on an agent-based simulation of passenger railway RM. The model is empirically calibrated using data provided by a European long-distance railway operator. On the long term, reducing fares to induce additional demand can foil revenue gains when customers learn and communicate reference prices. Accordingly, knowing customers' tendency to build reference prices becomes crucial.

KW - reference prices

KW - railway revenue management

KW - Prospect Theory

KW - learning customer behaviour

KW - simulation

U2 - 10.1057/rpm.2015.9

DO - 10.1057/rpm.2015.9

M3 - Journal article

VL - 14

SP - 155

EP - 165

JO - Journal of Revenue and Pricing Management

JF - Journal of Revenue and Pricing Management

SN - 1476-6930

IS - 3

ER -