Double marginalization causes inefficiencies in vertical markets. This paper argues that such inefficiencies may be beneficial to final consumers in markets producing vertically differentiated goods. The rationale behind this result is that enhancing efficiency in high-quality supply chains...

We analyze the assortment optimization problem faced by a monopolistic firm selling n substitutable products in both store and online channels. In our problem, a subset of products (the assortment) are offered in store while all products are sold online. Compared to purchasing in store,...

We analyze the listing decisions of a retailer who may ask her suppliers to make upfront payments in order to be listed. We consider a sequential game with upfront payments being negotiated before short-term delivery contracts. We show that the retailer is more likely to use upfront payments the...