Stereotypically, marketing is mainly concerned about satisfying customers and manufacturing is mainly interested in factory efficiency. Using the principal-agent (agency) paradigm, which assumes that the marketing and manufacturing managers of the firm will act in their self-interest, we seek...

The resource manager of a firm is faced with capacity and pricing decisions with regard to a congestion-prone system such as computer/communication facilities. Difficulties arise since the manager is uninformed of the system demand when the capacity decision is to be made. A game-theoretic model...

Price protection is a commonly used practice between manufacturers and retailers in the personal computer (PC) industry, motivated by drastic declines of product values during the product life cycle. It is a form of rebate given by the manufacturer to the retailer for units unsold at the...

(This article originally appeared in Management Science, April 1997, Volume 43, Number 4, pp. 546--558, published by The Institute of Management Sciences.) Consider a series of companies in a supply chain, each of whom orders from its immediate upstream member. In this setting, inbound orders...

In this paper we develop a product life-cycle model that studies a set of strategic choices facing manufacturers as they design the joint product/service bundle for a product which may require maintenance and repair support after its sale. The choice parameters of interest include the product...

Software contracting is a multi-faceted issue that involves legal, economic, managerial and technological considerations. To better understand the economic aspect of software contracting, this paper provides a summary review of software development contracts, followed by a gametheoretic model...

This paper investigates the impacts of a secondary market where resellers can buy and sell excess inventories. We develop a two-period model with a single manufacturer and many resellers. At the beginning of the first period resellers order and receive products from the manufacturer, but at the...