Design crowdsourcing is the largest open innovation model that can create value with potential consumers. It offers an opportunity to quickly respond market by obtaining instant designs from crowd, freelancing designers fundamental skills. In addition, it secure globally innovative competitiveness without financial burden, which more effective start-up companies and small medium enterprises (SM...

This study deals with the impact of channel strategy and channel format selection on the manufacturer’s, the retailer’s, the e-tailer’s, and the system-wide profits. We consider the problem of one manufacturer selling one product in the market through two competing channels: a physical channel (retailer) and an internet channel (e-tailer). We assume the manufacturer uses two commonly applied co...

In the widely studied ‘revenue sharing’ (hereafter [RS]) contract format, the manufacturer of a product not only charges the retailer a unit wholesale price w, but also requires the retailer to share part of the product’s revenue (ie, the unit retail price p) with him. For a product with price-dependent demand, it is well known that if a dominant manufacturer knows the system parameters determi...

We develop a reduced-form model of price transmission in a vertical sector, allowing for refined asymmetric, contemporaneous and lagged, own and cross price effects. The model is used to analyze wholesale-retail price dynamics in the US butter market. The analysis provides strong evidence of asymmetric price transmissions. It documents the complex nature of nonlinear price dynamics in a vertica...

We study a supply chain comprised of a retailer who sources a product from a manufacturer. The retailer has superior information about the market demand, and the manufacturer must build the capacity and set the wholesale price prior to observing demand realization. We explore the level of information the retailer can share with the manufacturer by means of cheap talk. We first analyze a case in...

I study U.S. gasoline prices following Hurricane Rita to show that short-lived geographical differences in the severity of wholesale gasoline price spikes are associated with long-lasting geographical differences in retail prices. In most U.S. cities, wholesale prices spiked significantly for roughly two weeks following the hurricane. However, in cities where this spike was particularly large, ...

Reducing carbon emissions, including emission abatement outsourcing at the supply-chain level, is becoming a significant but challenging problem in practice. Confronting this challenge, we therefore break down the practice to focus on a low-carbon supply chain consisting of one supplier, one manufacturer and one third-party emission-reducing contractor. The contractor offers a carbon reduction ...