Channels have traditionally been viewed as intermediaries that facilitate the transfer of products from manufacturers to consumers. Innovations in digital technologies help firms to integrate the customer experience across channels and devices. This new phenomenon is referred to as...

Most prescription purchases in the US are covered by health insurance. Insurance companies typically develop a formulary structure to reduce the drug costs and improve patients' access to drugs. In this paper, we study how the formulary structure affects price competition between competing...

Power, a fundamental characteristic of social interactions, characterizes one's ability to influence others. Fairness, inherently a type of social preference, impacts distributive decision-making. How does power shape the perceptions of fairness in economic interactions? While previous research...

The broad takeaway from the literature on cause-related marketing products, where firms donate to charities when consumers make a purchase, is that "warm glow" can increase demand. However, recent field results show that embedding donations increases demand only if the price of the product is...

This paper studies a manufacturer's optimal decisions on extending its product line when the manufacturer sells through either a centralized channel or a decentralized channel. We show that a manufacturer may provide a longer product line for consumers in a decentralized channel than in a...

We examine a supply chain with a single supplier and multiple retailers to predict retailers’ actual ordering behaviors. If retailer orders exceed supplier capacity, a proportional rationing rule applies to capacity allocation among retailers. We propose a behavior model based on cognitive...

We consider a supply chain with a supplier selling products to a retailer who is boundedly rational. The retailer's orders are randomly distributed around the optimal order quantity. We develop a behavioral model which incorporates human retailers' bounded rationality in the supplier's...

We propose a behavioral theory to predict actual ordering behavior in multi-location inventory systems. The theory rests on a well-known stylized fact of human behavior: People's preferences are reference-dependent. We incorporate reference-dependence into the newsvendor framework by assuming...