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The risk of supply disruption increases as firms seek to procure from cheaper, but unproven, suppliers. In this paper, we model a supply chain consisting of a single buyer and two suppliers, both of whom compete for the buyer's order and face risk of supply disruption. One supplier is...
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We develop a game theoretic model of price competition in which an innovating firm can offer product demonstrations. Placing minimal restriction on the firm's ability to design demonstrations, we show that the equilibrium demonstration resolves some but not all customer valuation uncertainty and...
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Traditionally, outlet stores were situated away from main stores in order to provide older, less desirable products at discounted prices. More recently, some firms have featured an outlet-within-a-store concept and offer consumers the experience of outlet shopping at the same location. With an...
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