Yang, Hongsuk; Schrage, Linus - In: European Journal of Operational Research 192 (2009) 3, pp. 837-851
We say product A is a partial substitute for product B if a fraction of the customers who prefer B are willing to accept A when B is out of stock. When demand is uncertain, it is intuitive and true that a larger "willing to substitute" fraction implies larger expected profits. A higher "willing...