A growing body of research suggests that an abundance of choices can lead to decision-making difficulties for consumers. Rather than maximizing utility, many consumers employ a satisficing decision-making approach, whereby they search for products sequentially until they find one that is...

Retailers often organize at least part of their assortment by displaying complementary products from different product categories together (e.g., a pair of pants with a shirt) rather than grouping items by product type (e.g., a pair of pants with other pants). However, little is known about how...

We develop a structural demand model that captures the effect of out-of-stocks on customer choice. Our estimation method uses store-level data on sales and partial information on product availability. Our model allows for flexible substitution patterns which are based on utility maximization...

This article examines how consumers' purchase-quantity goals influence their choice of an assortment. It documents that consumers are more likely to choose an assortment when its size matches the desired purchase quantity - a strategy referred to as the quantity-matching heuristic. The reliance...

Research presented in this article examines the impact of product assortment on individuals' decisions. Four experiments report converging evidence that the impact of assortment is moderated by the degree to which individuals have articulated attribute preferences, whereby individuals with an...

In this paper, we consider the joint effects of product substitution and endogenized market size. Under the substitution effects, a product's demand may be cannibalized by other substitutable products; while the market size, measured by the number of customers who are interested in one of the...

We consider the product ranking challenge that online retailers face when their customers typically behave as "window shoppers": they form an impression of the assortment after browsing products ranked in the initial positions and then decide whether to continue browsing. We design online...

Motivated by several practical selling scenarios that require previous purchases to unlock future options, we consider a multi-stage assortment optimization problem, where the seller makes sequential assortment decisions with commitment, and the customer makes sequential choices to maximize her...