The undesirable but inevitable consequence of running promotions is that consumers can be trained to time their purchases strategically. In this paper, we study randomized promotions, where the firm randomly offers discounts over time, as an alternative strategy of intertemporal price...

We consider a two-sided market competition problem where two platforms compete in both supply and demand sides. We examine a variety of competition modes and study the impact of precommitment on the equilibrium outcomes. By comparing three types of competitions: simultaneous price and wage...

Customer arrival patterns observed in the real world typically exhibit strong seasonal effects. It is therefore natural to ask: Can a nonhomogeneous Poisson process (NHPP) with a rate function that is the simple sum of sinusoids provide an adequate description of reality? If so, how can the...

Money back guarantees (MBGs), which allow customers to return products that do not meet their expectations, are widely used in the retail industry. In this paper, we study a retailer's MBG policy with dynamic pricing of a limited inventory. A key decision for the retailer is to decide whether to...

We analyze a firm's optimal pricing of a new service when consumers interact in a network and impose positive externality on one another. The firm initially provides its service for free, leveraging network externality to promote rapid service consumption growth. The firm raises the price and...

Reviews for products and services written by previous consumers have become an influential input to the purchase decision of customers. Many service businesses monitor the reviews closely, for feedback as well as detecting service flaws, and they have become part of the performance review for...

In modern retailing, frequent discounts are seemingly at odds with the idea that price variation antagonizes loss-averse consumers and hence diminishes their demand for products and services. We model a monopolist selling a product over time to loss-averse consumers who differ in their...