Analyzing a sequential bargaining framework with one retailer and two suppliers of substitutable goods, we show that slotting fees may emerge as a result of a rent-shifting mechanism when consumer shopping costs are taken into account. If consumers economize on their shopping costs by bundling...

We analyze the listing decisions of a retailer who may ask her suppliers to make upfront payments in order to be listed. We consider a sequential game with upfront payments being negotiated before short-term delivery contracts. We show that the retailer is more likely to use upfront payments the...

In this paper, we consider a new customer choice model which we call the single transition choice model. In this model, there is a universe of products and customers arrive at each product with a certain probability. If the arrived product is unavailable, then the seller can recommend a subset...

We consider the problem of "hyper-localizing" product assortments at a fashion retailer — that is, customizing the offerings to the particular preferences of customers visiting the store, so that customers can easily find the products that fit their tastes and purchase more. To make this...

This paper studies the single-warehouse assortment selection problem that aims to minimize the order fulfillment cost under the cardinality constraint. We propose two types of fulfillment-related cost functions, which correspond to different preferences toward spillover fulfillment and...

We consider an assortment optimization problem where the customer may purchase multiple products and possibly more than one unit of each product purchased. We adopt the customer consumption model based on the Multiple-Discrete-Choice (MDC) model proposed by Huh and Li (2021). We identify...

Retailers need to decide on the content and structure of their product assortments, and thereby on the degree of variety that they offer to their customers. This paper compares measures of assortment variety and relates them to underlying variety components. We conceptualize assortment variety...

We empirically examine consumer showrooming phenomenon in the footwear industry. Using transaction-level data from a large online footwear retailer and offline store entry data from four major footwear retail chains in the U.S., we quantify the effect of offline store entry on the competing...

We consider the key operational problem of optimizing the mix of offered products to maximize revenues when product prices are exogenously set and product demand follows a general discrete choice model. The key challenge in making this decision is the computational difficulty of finding the best...