Recent operations management papers model customers as solving multiarmed bandit problems, positing that consumers use a particular heuristic when choosing among suppliers. These papers then analyze the resulting competition among suppliers and mathematically characterize the equilibrium...

The observed behavior of customers and managers often does not fit the assumptions of theoretical models used in the operations management (OM) literature. New research in behavioral OM is emerging to bridge the gap between traditional models and these newer observational findings. This work is...