In monopoly pricing situations, firms should optimally vary prices to learn demand. The variation must be sufficiently high to ensure complete learning. In competitive situations, however, varying prices provides information to competitors and may reduce the value of learning. Such situations...

We consider the markdown pricing problem of a firm that sells a product to a mixture of myopic and forward-looking customers. The firm faces an uncertainty about the customers' forward-looking behavior, arrival pattern, and valuations for the product, which we collectively refer to as the demand...

We study the profit maximization problem of a market maker in a spread betting market. In this market, the market maker quotes cutoff lines for the outcome of a certain future event as “prices,” and bettors bet on whether the event outcome exceeds the cutoff lines. Anonymous bettors with...

We consider a firm that designs a vertically differentiated product line for a population of cus- tomers with heterogeneous quality sensitivities. The firm faces an uncertainty about the cost of quality, and we formulate this uncertainty as a belief distribution on a set of cost models. Over a...

We consider a platform in which multiple sellers offer their products for sale over a time horizon of T periods. Each seller sets its own price. The platform collects a fraction of the sales revenue and provides price-setting incentives to the sellers to maximize its own revenue. The demand for...