Online discount voucher market In the discount voucher market, customers usually face two types of valuation uncertainty, namely, preference uncertainty and consumption state uncertainty. Preference uncertainty is related to the customer's lack of relevant experience with the merchant, whereas...

Most retailers today sell products through an online channel in addition to traditional physical stores. We investigate how such a multi-channel or omni-channel retailer should decide the number and size of physical stores. We show that a higher return rate for online purchases can incentivize...

This paper considers the problem of hedging inventory risk for a seasonal product whose demand is sensitive to weather conditions, such as the average seasonal temperature. The newsvendor not only decides the order quantity, but also adopts a weather hedging strategy. A typical hedging strategy...