Overselling in a Competitive Environment: Boon or Bane?

نویسنده

  • Wei Shi Lim
چکیده

In this paper, we study the practice of overselling in a competitive environment where late arriving consumers value the good higher than early arriving ones but the former’s arrival is uncertain. We show that overselling is a dominant strategy for the firms. However, it can lead to a prisoners’ dilemma situation in which all firms are worse off overselling. We further show that only when demand from the late consumers far exceeds the supply and there is a sufficiently high profit margin from reselling does overselling result in a Pareto dominant outcome for the firms.

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عنوان ژورنال:
  • Marketing Science

دوره 28  شماره 

صفحات  -

تاریخ انتشار 2009