Problem definition: The undesirable but inevitable consequence of running promotions is that consumers can be trained to time their purchases strategically. In this paper, we study randomized promotions, where the firm randomly offers discounts over time, as an alternative strategy of...

The undesirable but inevitable consequence of running promotions is that consumers can be trained to time their purchases strategically. In this paper, we study randomized promotions, where the firm randomly offers discounts over time, as an alternative strategy of intertemporal price...

Resale of used products may shrink the new-product market and create the cannibalization problem. This problem is exacerbated in the digital goods market because copies of digital goods can be perfect substitutes of the original. Many digital goods/service producers take advantage of technology...

In practice, managers often face a trade-off of choosing between committed and contingent pricing under cost uncertainty because contingent pricing may increase the firm’s profit but may decrease consumer surplus and market share. This article compares the two pricing strategies under cost...