Network Revenue Management: Some Issues on Upper and Lower Bounds

We consider a Network Revenue Management Problem with uncertain demand and nested capacity control. The objective is to maximize expected revenue by setting nested booking limits b _j for all products j=1,…, n. For this setting, no closed form for the objective function is known. In this paper, we propose a method to derive upper and lower bounds on the expected revenue when nested booking limits b ₁ ,…, b _n are given.