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

In an incomplete market economy, all claims cannot be priced uniquely based on arbitrage. The prices of attainable claims (those that are spanned by traded claims) can be determined uniquely, whereas the prices of those that are unattainable can only be bounded. We first show that tighter price...

(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...

We investigate how different types of social information affect the demand characteristics of firms competing through service quality. We first generate behavioral hypotheses around both consumers' learning behavior and firms' corresponding demand characteristics: market share, demand...

We demonstrate the value of utility-based choice models to estimate demand and plan inventory for new and used textbooks in the presence of consumer choice and stockout-based substitution at a university textbook retailer. Demand information is censored, the exact time of stockout is not...

We investigate how uncertainty in retail sales can be explained by the return on a financial market index. This information can be employed in forecasting, hedging, and risk management. Our forecasting model expresses the total sales of a retailer as a function of sales forecasts generated by...

This paper uses the FactSet/Revere data set of supply linkages to study the structure of the global production network during 2003-2018. We examine five hypotheses. At the individual firm-level, we show that the in-degree of firms increased at 2.7% per year and out-degree increased at 2.1% per...

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...