This paper considers the consumption behavior of a risk-averse consumer with a preference for immediate consumption who faces an uncertain income stream and plans for a finite or infinite number of periods. The consumer may borrow up to a limit or save, where both saving and borrowing are...

The bullwhip effect is the amplification of demand variability along a supply chain: a company bullwhips if it purchases from suppliers more variably than it sells to customers. Such bullwhips (amplifications of demand variability) can lead to mismatches between demand and production and hence...

This paper studies an organizational architecture that I call information-age architecture. I define a measure of organizational IQ and test whether it is related to financial and market success using data from the fast-moving information technology industry. Higher organizational IQ is...

We study a market with customers who have heterogeneous preferences for product attributes. We consider two types of firms that compete on price and product variety: A traditional firm, which chooses a limited set of product configurations, and a customizing firm, which can produce any...

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This paper studies time-based competition in imperfect securities markets, linking IT investment decisions, information processing delays, and trading strategies. At the IT investment stage, traders trade off the cost of IT against their anticipated trading profits. At the trading stage, each...

This paper studies optimal pricing and capacity decisions for a service facility in an environment where users' delay cost is important. The model assumes a general nonlinear delay cost structure and incorporates the tradeoff between the delay cost and capacity cost. We find necessary and...

In a variety of industries ranging from agriculture to electronics and oil, procurement takes place through a combination of bilateral fixed-price contracts and open market trading among supply chain participants, which allows them to improve supply chain performance by utilizing new demand and...

We model the effects of alternative coordination structures on the performance of a firm that faces uncertain demand in multiple horizontal markets. The firm's coordination structure is jointly determined by its decision-rights structure and by its information structure. We compare the...

We model concept testing in new product development as a search for the most profitable solution to a design problem. When allocating resources, developers must balance the cost of testing multiple designs against the potential profits that may result. We propose extreme-value theory as a...