The extensive adoption of uniform pricing for branded variants is a puzzling phenomenon, considering that firms may improve profitability through price discrimination. In this paper, we incorporate consumers' concerns of peer-induced price fairness into a model of price competition and show that...

In the first part of the dissertation, we incorporate the concept of distributive fairness into the conventional dyadic channel to study how fairness may affect the interactions between the manufacturer and the retailer. Traditional wisdom has shown that only nonlinear pricing schemes can...

S-shaped incentive schemes and pay caps are fairly common in practice. This paper demonstrates the optimality of s-shaped incentive schemes and pay caps by incorporating salespeople's aversion to pay inequity into the standard agency model. Our analysis shows that salespeople's desire for pay...

Critics have long faulted the wide-spread practice of trade promotions as wasteful. It has been estimated that this practice adds up to $100 billion worth of inventory to the distribution system. Yet the practice continues. In this paper, we propose a price-discrimination model of trade...

In this paper, we incorporate the concept of fairness in a conventional dyadic channel to investigate how fairness may affect channel coordination. We show that when channel members are concerned about fairness, the manufacturer can use a simple wholesale price above its marginal cost to...

Prior theory claims that buyback and revenue-sharing contracts achieve equivalent channel-coordinating solutions when applied in a dyadic supplier–retailer setting. This suggests that a supplier should be indifferent between the two contracts. However, the sequence and magnitude of costs and...

In managing service failures such as stockouts, most research has emphasized preventive mechanisms, whereas stockout recovery mechanisms have been largely ignored. We propose and examine a failure-recovery mechanism (i.e., contractual stockout recovery) in the presence of demand uncertainty and...

The authors analytically and experimentally evaluate how firms make decisions in a two-stage dyadic channel, in which firms decide on investments in the first stage and then on prices in the second stage. They find that firms' behavior differs significantly from the predictions of the standard...