We develop a model of consumer learning and choice behavior in response to uncertain serviceat the marketplace. Learning could be asymmetric, i.e., consumers may associate differentweights with positive and negative experiences. Under this consumer model, we characterize thesteady-state...

(1) Problem Defi nition: Banks commonly use asset-based lending (ABL) to provide loans collateralized by a borrower firm's inventory. We study the implications of ABL by examining how banks should determine asset-based loan terms based on fi rms' operational characteristics (e.g., inventory...

The cash flow from the operations of a firm is an endogenous function of the operational variables of the firm -- sales, operating cost, inventory, payables, receivables, etc. Cash flow depends on these variables, and in turn, these variables depend on cash flow and each other through the...