Problem definition: We consider a monopolist firm selling products to strategic customers who may purchase more than one unit of the product. A key feature of multi-unit purchases is that customers do not value the additional purchases as highly as the first unit, implying the results of...

We consider a retailer selling new products with a returns policy. After consumers purchase products and find them undesirable, they can either return the products to the retailer or resell them individually. Both the retailer and consumers incur transaction costs in resale. Anticipating that...