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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...
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Retailers and their suppliers often exchange demand information, which is believed to benefit both firms and consumers. We show how such information exchange can benefit only the upstream supplier at the expense of the downstream retailer and consumers.
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We consider a seller who owns two capacity-constrained resources and markets two products (components) corresponding to these resources as well as a bundle comprising the two components. In an environment where all customers agree that one of the two components is of higher quality than the...
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