Proving the performance of a new revenue management system

Revenue management (RM) is a complicated business process that can best be described ascontrol of sales (using prices, restrictions, or capacity), usually using software as a tool to aiddecisions. RM software can play a mere informative role, supplying analysts with formatted andsummarized data who use it to make control decisions (setting a price or allocating capacity fora price point), or, play a deeper role, automating the decisions process completely, at the otherextreme. The RM models and algorithms in the academic literature by and large concentrateon the latter, completely automated, level of functionality.A firm considering using a new RM model or RM system needs to evaluate its performance.Academic papers justify the performance of their models using simulations, where customerbooking requests are simulated according to some process and model, and the revenue perfor-mance of the algorithm compared to an alternate set of algorithms. Such simulations, whilean accepted part of the academic literature, and indeed providing research insight, often lackcredibility with management. Even methodologically, they are usually awed, as the simula-tions only test \within-model" performance, and say nothing as to the appropriateness of themodel in the first place. Even simulations that test against alternate models or competition arelimited by their inherent necessity on fixing some model as the universe for their testing. Theseproblems are exacerbated with RM models that attempt to model customer purchase behav-ior or competition, as the right models for competitive actions or customer purchases remainsomewhat of a mystery, or at least with no consensus on their validity.How then to validate a model? Putting it another way, we want to show that a particularmodel or algorithm is the cause of a certain improvement to the RM process compared to theexisting process. We take care to emphasize that we want to prove the said model as the causeof performance, and to compare against a (incumbent) process rather than against an alternatemodel.In this paper we describe a \live" testing experiment that we conducted at Iberia Airlineson a set of flights. A set of competing algorithms control a set of flights during adjacentweeks, and their behavior and results are observed over a relatively long period of time (9months). In parallel, a group of control flights were managed using the traditional mix of manualand algorithmic control (incumbent system). Such \sandbox" testing, while common at manylarge internet search and e-commerce companies is relatively rare in the revenue managementarea. Sandbox testing has an undisputable model of customer behavior but the experimentaldesign and analysis of results is less clear. In this paper we describe the philosophy behind theexperiment, the organizational challenges, the design and setup of the experiment, and outlinethe analysis of the results. This paper is a complement to a (more technical) related paper thatdescribes the econometrics and statistical analysis of the results.

Customer Focus Newsletter, September/October, 2008, Vol. 5, no. 5

A bi-monthly bulletin to keep the department/agency management teams of state government better informed. We hope to consolidate most of the service update messages we send throughout the month and keep you updated about the work of the Customer Councils. If yours is one of the many departments who participated in the second annual DAS customer satisfaction survey recently, we thank you for taking the time to give us this important feedback. We look forward to sharing survey results with you, and pledge to consider responses carefully as we work to determine benchmarks and set future priorities.

Institutional support of the firm: A theory of business registries

Registering originative business contracts allows entrepreneurs and creditors to choose, andcourts to enforce market-friendly contract rules that protect innocent third parties whenadjudicating disputes on subsequent contracts. This reduces information asymmetry for thirdparties, which enhances impersonal trade. It does so without seriously weakening property rights,because it is rightholders who choose or activate the legal rules and can, therefore, minimize thecost of any possible weakening. Registries are essential not only to make the chosen rules publicbut to ensure rightholders commitment and avoid rule-gaming, because independent registriesmake rightholders choices verifiable by courts. The theory is supported by comparative andhistorical analyses.

Firm investment in imperfect capital markets: A structural estimation

We set up a dynamic model of firm investment in which liquidity constraintsenter explicity into the firm's maximization problem. The optimal policyrules are incorporated into a maximum likelihood procedure which estimatesthe structural parameters of the model. Investment is positively related tothe firm's internal financial position when the firm is relatively poor. This relationship disappears for wealthy firms, which can reach theirdesired level of investment. Borrowing is an increasing function of financial position for poor firms. This relationship is reversed as a firm's financial position improves, and large firms hold little debt.Liquidity constrained firms may be unused credits lines and the capacity toinvest further if they desire. However the fear that liquidity constraintswill become binding in the future induces them to invest only when internalresources increase.We estimate the structural parameters of the model and use them to quantifythe importance of liquidity constraints on firms' investment. We find thatliquidity constraints matter significantly for the investment decisions of firms. If firms can finance investment by issuing fresh equity, rather than with internal funds or debt, average capital stock is almost 35% higher overa period of 20 years. Transitory shocks to internal funds have a sustained effect on the capital stock. This effect lasts for several periods and ismore persistent for small firms than for large firms. A 10% negative shock to firm fundamentals reduces the capital stock of firms which face liquidityconstraints by almost 8% over a period as opposed to only 3.5% for firms which do not face these constraints.

Inflation and output dynamics with firm-owned capital

We model firm-owned capital in a stochastic dynamic New-Keynesian generalequilibrium model à la Calvo. We find that this structure impliesequilibrium dynamics which are quantitatively di¤erent from the onesassociated with a benchmark case where households accumulate capital andrent it to firms. Our findings therefore stress the importance ofmodeling an investment decision at the firm level in addition to ameaningful price setting decision. Along the way we argue that the problemof modeling firm-owned capital with Calvo price-setting has not been solvedin a correct way in the previous literature.

Location models for ceding market share and shrinking services

New location models are presented here for exploring the reduction of facilities in aregion. The first of these models considers firms ceding market share to competitorsunder situations of financial exigency. The goal of this model is to cede the leastmarket share, i.e., retain as much of the customer base as possible while sheddingcostly outlets. The second model considers a firm essentially without competition thatmust shrink it services for economic reasons. This firm is assumed to close outlets sothat the degradation of service is limited. An example is offered within a competitiveenvironment to demonstrate the usefulness of this modeling approach.

Downsizing, job insecurity and firm reputation

This paper studies how firms make layoff decisions in the presence of adverse shocks. In this uncertain environment, workers' expectations about their job security affect their on-the-job performance. This productivity effect on job insecurity forces firms to strike a balance between laying off redundant workers and maintaining survivors' commitment when deciding on the amount and timing of downsizing. This framework offers an explanation of conservative employment practices (such as zero or reduced layoffs) based on firms having private information about their future profits. High retention rates and wages can signal that the firm has a bright future, boosting workers' confidence. Moreover, the model provides clear predictions about when waves of downsizing will occur as opposed to one-time massive cuts.

The growth and diffusion of knowlegde and the theory of the firm

We analyze the implications of a market imperfection related to the inability to establish intellectual property rights, that we label {\it unverifiable communication}. Employees are able to collude with external parties selling ``knowledge capital'' of the firm. The firm organizer engages in strategic interaction simultaneously with employees and competitors, as she introduces endogenous transaction costs in the market for information between those agents. Incentive schemes and communication costs are the key strategic variables used by the firm to induce frictions in collusive markets. Unverifiable communication introduces severe allocative distortions, both at internal product development and at intended sale of information (technology transfer). We derive implications of the model for observable decisions like characteristics of the employment relationship (full employment, incompatibility with other jobs), firms' preferences over cluster characteristics for location decisions, optimal size at entry, in--house development vs sale strategies for innovations and industry evolution.

Customer Focus Newsletter, November-December, 2008, Vol. 5, no.

A bi-monthly bulletin to keep the department/agency management teams of state government better informed. We hope to consolidate most of the service update messages we send throughout the month and keep you updated about the work of the Customer Councils. If yours is one of the many departments who participated in the second annual DAS customer satisfaction survey recently, we thank you for taking the time to give us this important feedback. We look forward to sharing survey results with you, and pledge to consider responses carefully as we work to determine benchmarks and set future priorities.

Customer Focus Newsletter, January-February, 2009, Vol. 6, no.1

A bi-monthly bulletin to keep the department/agency management teams of state government better informed. We hope to consolidate most of the service update messages we send throughout the month and keep you updated about the work of the Customer Councils. If yours is one of the many departments who participated in the second annual DAS customer satisfaction survey recently, we thank you for taking the time to give us this important feedback. We look forward to sharing survey results with you, and pledge to consider responses carefully as we work to determine benchmarks and set future priorities.

Interactividade na Educação digital

Este trabalho monográfico reflecte sobre a Interactividade na Educação digital. Com ele nós pretendemos compreender melhor a importância da Interactividade na Educação digital sobretudo nos ambientes virtuais de aprendizagem. Também serão explicado o conceito da interactividade na perspectiva de vários autores com intuito de compreendê-la melhor já que se trata de um conceito impulsionador do processo de aprendizagem. Ainda serão explicados quais são as funções dos formandos e dos docentes nesse tipo de ensino bem como a sua influência na construção de um ambiente de aprendizagem colaborativa, para que a aprendizagem seja construída á base, da interacção e a mesma seja efectivada com mais afinco. Podemos ver também as diferentes formas de interactividade existente nos Ambientes Virtuais de Aprendizagem multimédia bem como a evolução da educação à distância desde ensino por correspondência passando pelo ensino via rádio até chegar à era digital ou aos Ambientes Virtuais de Aprendizagem onde irá debruçar um pouco o nosso estudo. Ainda apresentamos um estudo de caso da Universidade Jean Piaget de Cabo Verde que se baseou na análise das ferramentas interactivas da plataforma que é um ambiente virtual de aprendizagem (AVA) utilizado por esta instituição de ensino e que tem por finalidade promover o ensino e a aprendizagem e torná-la mais interactiva. Acreditamos que as bases aqui apresentadas são necessárias e relevantes para entender que é indispensável que haja interactividade na educação e principalmente na educação digital.

DIGITAL LIBRARIES IN THE DEVELOPING COUNTRIES

Digital libraries (DL) are seen as a hope to developing countries in their struggle for accessing bibliographic resources, especially in a context where the traditional distribution mechanisms failed tragically. Several difficulties are however faced by these countries to build and use digital libraries, due mainly to its high development costs and to the poor existing ICT resources in these countries. This paper discusses the importance of digital libraries for developing countries and introduces the main challenges they face in building and using such libraries. The current alternatives and major initiatives for making digital information accessible to developing countries are also addressed.

DIGITAL LIBRARY FOR DIGITAL DIVIDE AND ENVIRONMENT OF SCARCE ACCESS TO PRINTED MATERIALS: THE CASE OF UNIVERSITY JEAN PIAGET OF CAPE VERDE

With the failure of the traditional mechanisms of distributing bibliographic materials into developing countries, digital libraries show up as a strong alternative in accomplishing such job, despite the challenges of the digital divide. This paper discusses the challenges of building a digital library (DL) in a developing country. The case of Cape Verde as a digital divide country is analyzed, in terms of current digital library usage and its potentiality for fighting the difficulties in accessing bibliographic resources in the country. The paper also introduces an undergoing project of building a digital library at the University Jean Piaget of Cape Verde.

Uso del libro de texto digital en las asignaturas de lenguas (castellano-catalán) : estudio de caso en el centro de secundaria Duc de Montblanc (Rubí)

Estudi de cas relatiu a la implantació del llibre de text digital en el centre d'educació secundària Duc de Montblanc (Rubí, Barcelona) en relació als plans governamentals d'introducció de les TIC en l'educació: EduCat 1x1 i EduCat 2.0. A través de les tècniques utilitzades en aquesta anàlisi de cas (anàlisi documental, anàlisi dels llibres de text digitals i entrevistes en profunditat), s'ofereixen els resultats referent a l'ús, els avantatges i inconvenients que presenta aquest material educatiu en el desenvolupament de les dinàmiques de l'aula en aquest centre educatiu en particular

Análise da Aceitabilidade e Potencialidade de uma Biblioteca Digital para Assembleia Nacional

Com o avanço impulsivo das tecnologias de comunicação e da informática, o mundo presencia o surgimento de uma nova sociedade, onde a informação se faz omnipresente, mudando nossa forma de pensar e agir, pois ela desempenha um papel de extrema importância na tomada de decisão. Não obstante, o aparecimento das bibliotecas digitais se tornou de certa forma o motor e tem desempenhado um papel preponderante na disseminação e divulgação da informação. Uma vez que a Biblioteca Digital tem este papel, de disseminar a informação ou ser centro de conhecimento, se tornou uma tecnologia estratégica, pois visa apoiar a tomada das decisões. Deste modo, o presente trabalho visa propor á Assembleia Nacional a criação e implementação de uma Biblioteca Digital, apontando as vantagens que advêm desta, assim como propor as plataformas e software que irão suportar a Biblioteca Digital. Porém, o objectivo desse trabalho está na necessidade de digitalização do acervo, dos quais muitos exemplares existentes encontram-se em arquivo mais sem condições de uso, como também a falta de tempo por parte dos utilizadores da referida biblioteca.