The primary contribution from this research lies in the uncovering of the factors that predict the formation of horizontal distribution alliances (HDAs) as well as their success. HDAs are characterized by the joining of two firms??from the same industry??to distribute a product owned by one of...

Product returns cost U.S. companies more than $100 billion annually. The cost and scale of returns management issues necessitate a deeper understanding of how to deal with product returns. We develop an analytical model that describes how consumer purchase and return decisions are affected by a...

This paper investigates the pricing and restocking fee decisions of two competing firms selling horizontally differentiated products. We model a duopoly facing consumers who have heterogeneous tastes for the products and who must experience a product before knowing how well it matches with their...

The literature on chief executive officers (CEOs) established that economics and sociological rationales are both essential to understand the level and structure of CEOs' compensation. Our thesis is that internal "transaction costs" or frictions override strictly economic criteria to determine...

Several papers in the recent marketing literature have suggested that delegation in distribution (e.g., the use of independent middlemen) helps manufacturers to precommit strategically to profit-enhancing competitive actions. Further, the literature suggests that the profitability of such...

We study a channel relationship in which manufacturer(s) use independent sales representatives (rep firms), which employ salespeople to do the actual selling. We show that commission-only payments by manufacturers to rep firms lead to suboptimal outcomes for the manufacturer relative to those...

This paper discusses recent advances in the study of salesforce motivation and compensation. Special emphasis is given to quantitative approaches from the economics, finance, and marketing literatures. The paper summarizes the findings in this analytical work in the context of some examples of...

This paper discusses the problem of choosing a vertical marketing channel in a product-differentiated duopolistic market. Firms choose product price and the form of the marketing channel to maximize profits. It is shown that integration of the marketing function results in greater price...