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Intermediaries can choose between functioning as a marketplace (on which suppliers sell their products directly to buyers) or as a reseller (purchasing products from suppliers and selling them to buyers). We model this as a decision between whether control rights over a non-contractible decision...
Persistent link: https://www.econbiz.de/10012989153
Name-your-own-price (NYOP) retailers, such as Priceline, offer an alternative distribution channel for service providers in the travel industry such as airlines, hotels, and car rental companies. Our research employs an analytical model to identify and understand key trade-offs driving the...
Persistent link: https://www.econbiz.de/10009203901
Technology-driven commerce channels, such as the Web, possess several unique features that differentiate them from traditional channels. The interaction between firms operating across these differentiated channels involves interesting competitive dynamics that cannot be captured by isolated...
Persistent link: https://www.econbiz.de/10009198120
Internet companies extensively use the practice of drop-shipping, where the wholesaler stocks and owns the inventory and ships products directly to customers at retailers' request. Under the drop-shipping arrangement, the supply chain benefits from risk pooling because the inventory for multiple...
Persistent link: https://www.econbiz.de/10009191581
double marginalization. While operated by the manufacturer to constrain the retailer's pricing behavior, the direct channel …
Persistent link: https://www.econbiz.de/10009214460
Unauthorized subcontracting — when suppliers outsource part of their production to a third party without the retailer's consent — has been common practice in the apparel industry and is often tied to non-compliant working conditions. Because retailers are unaware of the third party, the...
Persistent link: https://www.econbiz.de/10014031909
We develop a theory that shows signaling a firm's fundamental quality (e.g., its operational capabilities) to lenders through inventory transactions to be more efficient---it leads to less costly operational distortions---than signaling through loan requests, and we characterize how the...
Persistent link: https://www.econbiz.de/10014033980
This paper proposes using nonlinear mixed-integer programming to solve the customized bundle-pricing problem in which … attractive features for the pricing of information and other low-marginal cost goods. Although closed-form solutions exist for … well as the potential loss of efficiency caused by pricing with incomplete information about consumer reservation values …
Persistent link: https://www.econbiz.de/10009191633
Manufacturers often use returns policies to encourage retailers to stock and price items more aggressively. We focus on the effect that such policies have on both a retailer's and a manufacturer's profits when the retailer must commit prior to the selling season to both a stocking quantity and a...
Persistent link: https://www.econbiz.de/10009218262
Pricing and quantity decisions are critical to many firms across different industries. We study the joint price …
Persistent link: https://www.econbiz.de/10009204301