By making new product preannouncements (NPP) firms encourage consumers to postpone purchase and wait for the firms' new product that in turn cannibalizes current sales, both own and competitor's. Profitability of NPP depends on which firm's sales are cannibalized and relative margins on current...

Firms that must choose capacity in advance of observing uncertain or time varying demand sometimes have more inventory than their full price customers will consume. By pricing a limited quantity at below market clearing rates, “rationed promotions” allow sellers to recruit enough excess...

Merchants are wary of a platform entering as a competitor and adversely affecting sales and margins. A platform wanting to maximize profits is interested also in gaining consumer trust and confidence by providing credible quality information to consumers. As a practical matter, could a...

People make a wide variety of choices as consumers, managers, employers, and regulators. Most of these choices are not made in a vacuum but rather in a context of strategic interactions that make individual payoffs interdependent across the decision makers. This payoff interdependence leads to...

Price discrimination is generally thought to improve firm profits by allowing firms to extract more consumer surplus. In competition, however, price discrimination may also be costly to the firm because restrictive incentive compatibility conditions may allow the competing firm to gain market...

In today’s media ecosystem, advertisers face the challenge to create ad campaigns with the ability to engage consumers and ultimately increase conversions. Hence, they need guidance on how to design promising ad copies and on which websites to deliver these ads. In this study, the authors...

Managing merchants challenges a selling platform. Using a multi-sender framework we ask if a platform and a competing merchant’s prices can together signal product quality if consumers’ information is incomplete. We find that both separating and pooling equilibria exist but for separation...

Many customers visit several online platforms before making a product purchase. These online platforms often offer multiple "ad positions" that advertisers can obtain via bidding in an auction. The ad positions differ in their "prominence" - the probability of engaging incoming visitors. We...