tag:blogger.com,1999:blog-7429207.post110780409608246885..comments2023-09-29T04:04:27.405-04:00Comments on marginal utility annex: Yield managementRob Horninghttp://www.blogger.com/profile/11159343725040502005noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-7429207.post-1107810396261858822005-02-07T16:06:00.000-05:002005-02-07T16:06:00.000-05:00Interesting observations. The archetype of the yie...Interesting observations. The archetype of the yield manager (illegal, by the way) is the country doctor who knows each of his patients' ability to bay. Grandma Millie can pay for her visit with a ham, while the manager of the Savings and Loan has to pay premium cash on the barrelhead. Airlines have been managing yield for years. Again, they find themselves in many a macroeconomics textbook. There's no item more perishable than an airline seat, not milk, not eggs. When an airplane takes off with an empty seat, it's a revenue opportunity lost forever. The examples you cite are the same and also different. A seat on a flight to Miami is the same product whether purchased by Larry Lunchbox or Larry Ellison, but is it the same exact product when one has months to plan their trip, and another needs to leave the next morning? Slightly different products, I think. A Glendale shirt versus a Scottsdale shirt? Much closer, says I. Though the Scottsdale shirt would most definitely cost more.Victor Ozolshttps://www.blogger.com/profile/10545825614603705625noreply@blogger.com