This study explores buyers’ search and purchase behavior in an information-overloaded retail Electronic Marketplace (EMP). Two instrumental variables, i.e. number of visitors and number of sales for an item, are used to represent buyers’ search and purchase behavior. Price and reputation, two of the most frequently researched independent variables in EMP studies, are considered. The relationshi...

Retail price and promotional effort are two important parameters on which demand of a commodity largely depends. This paper develops and analyzes a two-echelon supply chain where market demand depends on both retail price and sales effort. The centralized model is studied as the benchmark case, and the wholesale price-only contract is studied as the base case in which each entity tries to maxim...

Emerging telecommunications competition includes convergence of industries and the removal of barriers to formerly protected markets. Successful entry and protecting existing lines of business mean selecting those markets that will be most profitable to serve. Success will require much more product and price differentiation and targeting to particular customers. This paper describes methods for...

The willingness of a customer to pay for a product or service is mathematically captured by a price elasticity model. The model relates the responsiveness of customers to a change in the quoted price. In addition to overall price sensitivity, adverse selection could be observed whereby certain customer segments react differently towards price changes. In this paper the problem of determining op...

This research studies a case where there are two manufacturers producing competing products and selling them through a common retailer. The consumer demand depends on two factors: (1) retail price, and (2) service level provided by the manufacturer. Game-theoretic framework is applied to obtained the equilibrium solutions for every entities. This article studies and compares results from three ...

We extend stochastic newsvendor games with information lag by including dynamic retail prices, and we characterize their equilibria. We show that the equilibrium wholesale price is a nonincreasing function of the demand, while the retailer’s output increases with demand until we recover the usual equilibrium. In particular, it is then optimal for retailer and wholesaler to have demand at least ...

We revisit the classic Cournot model and extend it to a twoechelon supply chain with an upstream supplier who operates under demand uncertainty and multiple downstream retailers who compete over quantity. The supplier’s belief about retail demand is modeled via a continuous probability distribution function F . If F has the decreasing generalized mean residual life (DGMRL) property, then the su...

Reference price systems for prescription drugs constitute widely adopted cost containment tools. Under these regimes, patients co-pay a fraction of the difference between a drug's pharmacy retail price and a reference price that is set by the government. Reference prices are either externally (based on drug prices in other countries) or internally (based on domestic drug prices) determined. We ...