Littlewood Capacity Control Rule under Loss-aversion
Jinlin Li · Shuxue de shijian yu renshi · 2011
Under the prospect theory which developed by Kahneman and Tversky and by introducing a new utility function which has the loss-aversion characteristics,the Littlewood capacity control rule(the earliest single-resource model for quantity-based revenue management)is considered.Theoretical analysis and numerical examples indicate that the protection level of class 1 will continuously decreased along with the increase of loss aversion degree.