Pricing Analytics and Revenue Management

BUS429 Pricing Analytics and Revenue Management

Autumn 2020

  • Topics

    The content of this course has two main elements:

    It discusses the main principles of pricing and revenue management:

    • Understand it as a corporate process.
    • Review the economic principles of pricing.
    • Understand the key role of price differentiation (segmentation).
    • Learn to price when supply is constrained.

    It discusses revenue management as one of the major applications.

  • Learning outcome

    This course provides students with the tools to understand the tactical function of pricing and revenue optimization. Specifically, in this course the students will learn how to use management science analytical techniques to set prices in complex and dynamic environments.

    After completing this course, students:

    (Knowledge)

    • Understand the tactic role of pricing and revenue optimization within a strategic pricing plan in relevant business contexts.
    • Understand the economics foundation of pricing theory.
    • Understand the conditions for the application of revenue management.
    • Have an overview of the industries where pricing and revenue optimization has provided competitive advantages.

    (Skills)

    • Are able to identify potential applications of pricing and revenue management in new industries.
    • Are able to use analytical tools to model real-world pricing decision-making processes.
    • Are able to implement pricing solutions.

    (General competences)

    • Are capable to write reports to communicate their findings clearly and concisely, and in a rigorous form to provide business insights to diverse audiences

  • Teaching

    Lectures, computer workshops, online zoom sessions, team project.

  • Required prerequisites

    Elementary Statistics, Probability, and Optimization.

  • Requirements for course approval

    The three written home-works must be submitted by their respective deadlines in order to hand in the final written project.

  • Assessment

    Three written home-works, in groups of two students (or one student), where the students will solve specific questions related to the course content (50%).

    Final term paper (50%) - in groups of two students (or one student). 

    Homework 1 will be given to the students at the end of week 3 of the semester and they have to return the answers at the end of week 4.

    Homework 2 will be given to the students at the end of week 6 of the semester and they have to return the answers at the end of week 7.

    Homework 3 will be given to the students at the end of week 9 of the semester and they have to return the answers at the end of week 10.

    All elements have to be taken in the same semester.

  • Grading Scale

    A - F.

  • Computer tools

    MS Excel, python or R.

  • Literature

    Phillips, R. (2005) Pricing and Revenue Optimization. Stanford University Press.

    Tudor, B. and Ferguson, M. (2013) Segmentation, Revenue Management and Pricing Analytics. Routledge.

    Gallego, G. and Topaloglu, H. (2019) Revenue Management and Pricing Analytics. Springer.

Overview

ECTS Credits
7.5
Teaching language
English
Semester

Autumn. Offered Autumn 2020.

Course responsible

Associate Professor Julio C. Goez, Department of Business and Management Science