The make or buy decision is a strategic issue. When looking for finding out which components or products should be manufactured in house or externalized, questions about the required human and technical resources as well as costs of the externalization are to be answered. In the case of mobile manufacturing systems that are movable between various locations, long term strategic considerations m...

2 Naive Surplus Theory 2.1 Consumers who buy 0 or 1 unit I introduce the concept of surplus in one of the simplest models of demand. [This is the model underlying (Bakos and Brynjolfsson, 1999).] Consider a very large population of K consumers facing a market for a single good. Each consumer will buy either one or zero units of this good (per period), depending on the price. Each consumer has a...

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Online auction sites often enable sellers to add a buy-out price. In one-shot auctions, this has been motivated by appeal to impatience or risk aversion. We offer additional justification in a dynamic model, by showing that an early seller has an incentive to use a buy-out price, if a similar product is offered later by another seller, and bidders desire multiple objects. Revenue in the first a...

The buy-at-bulk network design problem has been extensively studied in the general graph model. In this paper we consider the geometric version of the problem, where all points in a Euclidean space are candidates for network nodes. We present the first general approach for geometric versions of basic variants of the buy-at-bulk network design problem. It enables us to obtain quasi-polynomial-ti...

While many theories of the firm seek to explain when firms make rather than buy, in practice firms often make and buy the same inputthey engage in plural sourcing. We argue that explaining the mix of external procurement and internal sourcing for the same input requires a consideration of complementarities across and constraints within modes of procurement. We create analytical foundations for ...

The likelihood ratio test is presented as a natural method to test for the presence of "always buy" and "never buy" consumers. The purchase sequence lengths and sample sizes required to estimate the proportions of these buyers are determined through the use of simulated data. Our method was then applied to two sets of well known data first analyzed by Aaker [1] and Montgomery [8]. The empirical...

On markets with receding prices, artificial noise traders may consider alternatives to buy-and-hold. By simulating variations of the Parrondo strategy, using real data from the Swedish stock market, we produce first indications of a buylow-sell-random Parrondo variation outperforming buy-and-hold. Subject to our assumptions, buy-low-sell-random also outperforms the traditional value and trend i...