We explore the procurement of influenza vaccines by a government whose objective is to minimize the expected social costs (including vaccine, vaccine administration, and influenza treatment costs) when a for-profit vaccine supplier has production yield uncertainty, private information about its...

Developing a complex new product requires the firm both to deconstruct that product into subsystems and to create an organizational structure aligned with the product architecture. However, empirical evidence indicates that misalignments do occur and are usually one of two general forms: a...

Replacement purchases constitute the majority of sales in markets for new consumer electronics. Manufacturers of such products increasingly opt to offer trade-ins rather than upgrades to frame their replacement sales. A rational consumer model suggests the two are equivalent while behavioral...

Durable goods manufacturers increasingly choose to offer trade-ins rather than upgrades to facilitate replacement purchases. With a rational consumer behavior model, the two schemes are equivalent and yield the same profit for the manufacturers. From a behavioral perspective however upgrades and...

Current understanding in operations management is that Prospect Theory, as a theory of decision making under uncertainty, cannot systematically explain the ordering behavior observed in experiments on the newsvendor problem. We suggest this is because the newsvendor's reference point is assumed...

We study a supply chain with manufacturer encroachment in which product quality is endogenous and customers have heterogeneous preferences for quality. It is known that, when quality is exogenous, encroachment could make the retailer better off. Yet, when quality is endogenous and the...