Now that we know all of these concepts, we can answer the naive beginner’s question: Dude, why not allocate just the average?
TWO COSTS
DILUTION AND SPOILAGE, the art of yield management.
Let’s visualize the critical ratio of Littlewood’s Rule!
Critical ratio and probability… looks like a breakthrough
Let’s take a look at what we can do with the power of Littlewood’s Rule.
Sure, we get it Littlewood’s Rule is amazing, but how did he develop it?
Let’s understand it from scratch.
Let’s hear the first formal theory of Revenue Management, created by one of the pioneers of Revenue and Yield Management, the man, the myth, the legend Ken Littlewood