This article analyzes a discrete time lost sales inventory system with partially observed demand and unobserved shrinkages which happen both before and after the demand realization. When the demand exceeds the remaining inventory, the unmet demand is lost and unobserved. This problem in general...

In this paper, we study a firm's dynamic pricing problem in the presence of unknown and time-varying heterogeneity in customers' preferences for quality. The firm offers a standard product as well as a premium product to deal with this heterogeneity. First, we consider a benchmark case in which...

This paper studies, both theoretically and empirically, how subordinates to CEOs can discipline the CEOs' self-serving activities. I predict that, because CEOs' self-serving activities hurt the subordinates through the subordinates' stakes in the firms, the subordinates who observe these...

An imitator—or a copycat—often enters a market to compete against an innovator. This article proposes a modeling approach that incorporates imitative entry in which an imitator produces a low end product that imitates a high-end product produced by the innovator. If no imitator enters the...