We consider the inventory transshipment problem between two retailers that sell the same product to two independent markets. One assumption that distinguishes our work is that unsatisfied customers may also switch to the retailer with surplus inventory. We examine the impact of such customer switching behavior on firms' inventory decisions and profits. We identify situations when the firm with ...

The advancement of hybrid energy resources such as solar and wind power leading to the emergence of customer owned grid. It provides an opportunity to regulars to obtain low energy costs as well as enabling the power supplier to regulate the utility grid. There is a need to develop smart systems that will automatically submit energy demand schedule and monitors energy price signals in real-time...

We embed the principal–agent model in a model of spatial differentiation with correlated consumer preferences to investigate the competitive implications of personalized pricing and quality allocation (PPQ), whereby duopoly firms charge different prices and offer different qualities to different consumers, based on their willingness to pay. Our model sheds light on the equilibrium productline p...

An unavoidable aspect of electronic commerce is the collection of personal information. Although personal information is paramount to improving services and designing personalized offerings, its collection and use also generates privacy concerns. This study analytically examines the optimal information collection and usage practices in the presence of privacy costs. We use an analytical model i...

• Asymmetric duopolists compete for two periods on a line interval. Information gathered in period 1 is used personalized pricing 2. They can agree to share customer information before the first period. sharing individually rational firms. worsens consumers welfare but improves total surplus. We study two-period model of behavior-based price discrimination where firms first-period competition b...

Over the past decade, American businesses have invested heavily in information technology (IT) hardware. Unfortunately, it has been difficult to assess the benefits that have resulted. One reason is that managers often buy IT to enhance customer value in ways that are largely ignored in conventional output statistics. Furthermore, because of competition, firms may be unable to capture the full ...

Measuring preferences via stated methods remains the only technique to obtain the total economic value of a non-marketed good or service. This study examines if alternative causes of an environmental problem affect individual statements of compensation demanded. Making use of a unique sample drawn from the Netherlands, we find that Hicksian equivalent surplus (ES) is not significantly affected ...

Sellers who plan to capitalize on the lifetime value of customers need to manage the sales potential from customer referrals proactively. To encourage existing customers to generate referrals, a seller can offer exceptional value to current customers through either excellent quality or a very attractive price. Rewards to customers for referring other customers can also encourage referrals. We i...

Consider two sellers each of whom has one unit of an indivisible good and two buyers each of whom is interested in buying one unit. The sellers simultaneously set reserve prices and use second-price auctions as rationing device. An equilibrium in pure strategies where each seller has a regular customer is characterized. The result is applied in order to demonstrate that not allowing sellers to ...

With the coming of information age and the development of economic integration, challenges that enterprises face increasingly go up. The excessive competition in the market makes the difference among products increasingly reduce, and the high surplus and the diversification of customers’ demands make the production management of the enterprise from the product orientation to the customer orient...