We present and study a three-stage model of a decentralized distribution system consisting of n retailers, each of whom faces a stochastic demand for an identical product. In the first stage, before the demand is realized, each retailer independently orders her initial inventory. In the second...

In different industries, such as automobiles, chemicals, or retailing, competitors are joining forces in establishing electronic marketplaces to reduce inefficiencies in the purchasing process and cut costs by combining their buying power. Joining such an alliance leads to reduced costs,...

We propose a new farsighted solution concept for abstract games, the Subgame Perfect Consistent Set (SPCS), based on consistency in the spirit of the von Neumann Morgenstern solution and on subgame perfect equilibrium. Rather than follow constructs such as indirect dominance, farsighted players...

This is a response to "Resolution of a Paradox: Mini-Max Rehabilitation," by P. T. Taylor, which appeared in Management Science 19 (1972), pp. 466-467, and "Some Further Thoughts on the Minimax Principle," by Morton Davis, which is appearing in this issue of Management Science.