Many manufacturers sell their products through retailers and share the revenue with those retailers. Given this phenomenon, we build a stylized model to investigate the role of revenue sharing schemes in supply chain coordination and product variety decisions. In our model, a monopolistic...

We model platform markets with the matching-with-contracts framework. The solution concept in matching with contracts, stability, has a natural interpretation in platform markets. We use this framework to explore properties in these markets including seesaw principle and market tipping. Finally,...

This paper provides a model that uses preference heterogeneity to rationalize the cross-sectional and intertemporal variation in a firm's product proliferation strategies. Product-line dynamics arise from shocks to preference heterogeneity. For example, in the potato chip category I study,...

Product platforms are assets that are shared by multiple products. We study the optimal investment in platform flexibility. Each platform type is characterized by its functionality that determines its R&D investment and unit production cost, as well as the customization cost to produce the end...

This research studies the product line design problem when consumers are subject to perceptual errors when assessing their intrinsic preferences. If the errors are driven by common variables, then a firm can filter out the impact of these variables using aggregate consumer data (e.g. survey...

Managing the quality of complementary applications is vital to the success of a two-sided platform. While prior research has focused solely on restricting platform access based on a quality threshold, we compare three quality regulation strategies: 1) the platform excludes access to low-quality...

Firms that sell vertically differentiated products infrequently roll out multiple products at the same time. In fact, it is often a firm already selling a well-established product, that decides to expand up- or downwards when such an opportunity arises. A critical decision in this scenario is...