We consider the compensation design problem of a firm that hires a salesperson to exert effort to increase demand. We assume both demand and supply to be uncertain, with sales being the smaller of demand and supply, and assume that if demand exceeds supply then unmet demand is unobservable...

Problem Definition: Unoccupied waiting feels longer than it actually is. Service providers operationalize this psychological principle by offering entertainment options in waiting areas. A service cluster with a common space provides firms with an opportunity to cooperate in the investment for...

In this paper, we propose and analyze a distributed negotiation strategy for a multi-agent multi-attribute negotiation in which the agents have no information about the utility functions of other agents. We analytically prove that, if the zone of agreement is non-empty and the agents concede up...

We study the impact of limited inventory on optimal salesforce compensation contracts. We use the framework of Oyer (2000), characterized by limited liability and rent sharing with the agent. A commonly invoked assumption in the inventory management literature is that the demand distribution...

We study a scenario in which a firm designs the compensation contract for a salesperson who exerts effort to increase the level of uncertain demand and, jointly, the firm also decides the level of inventory to be stocked. We use a newsvendor-type model in which actual sales depend on the...

We study the problem a diagnostic expert (e.g., a physician) faces when offering a diagnosis to a client (e.g., a patient) that may be based only on her own diagnostic ability or supplemented by a diagnostic test — conventional and artificial intelligence (AI) tools alike — revealing the...

A firm hires an agent (e.g., store manager) to undertake both operational and marketing tasks. Marketing tasks boost demand, but for demand to translate into sales, operational effort is required to maintain adequate inventory. The firm designs a compensation plan to induce the agent to put...

Public transit ridership tumbled amid the COVID-19 pandemic, contributing to enormous budget deficits and prompting slashed or eliminated service offerings across the United States. These service cuts may cause a vicious cycle and end up hurting the most vulnerable riders who cannot afford to...

Problem Definition. Between March and May 2020, in response to the COVID-19 pandemic, multiple states in the U.S. issued guidances for suspending elective surgery and subsequently lifted them. In this paper, we estimate the effect of such guidances on kidney transplantation.Methodology/Results....