We study a framework where two duopolists compete repeatedly in prices and where chosen prices potentially affect future market shares, but certainly do not affect current sales. This assumption of consumer inertia causes (noncooperative) coordination on high prices only to be possible as an equilibrium for low values of the discount factor. In particular, high discount factors increase opportu...

We study a framework where two duopolists compete repeatedly in prices and where chosen prices potentially affect future market shares, but certainly do not affect current sales. This assumption of consumer inertia causes (noncooperative) coordination on high prices only to be possible as an equilibrium for low values of the discount factor. In particular, high discount factors increase opportu...

This paper offers a market microstructure based model to explain the well-documented diversification discount. While explicitly assuming that stock price conveys valuable information to the management, our model shows that the value loss from diversification is a function of the stock price informativeness. If more investors are willing to follow and actively trade a certain stock, more informa...

The inventory models analyzed in this paper explore the problem in which the lead time and ordering cost reductions are inter-dependent in the continuous review inventory model with backorder price discount. The objective is to minimize total related cost by simultaneously optimizing the order quantity, reorder point, lead time and backorder price discount. Moreover, we assume that the mean and...

In today's fast marketing over the Internet or online, many retailers want to trade at the same time and change their marketing strategy to attract more customers. Some of the customers may decide to cancel their orders partially with a retailer due to various reasons such as increase in customer's waiting time, loss of customer's goodwill on retailer's business, and attractive promotional sche...

We propose a new interest rate dynamics model where the interest rates fluctuate in a bounded region. The model is characterised by five parameters which are sufficiently flexible to reflect the prediction of the future interest rates distribution. The interest rate converges in law to a Beta distribution and has transition probabilities which are represented by a series of Jacobi polynomials. ...

C a retailer who sells perishable seasonal products with uncertain demand. Due to the short sales season and long replenishment lead times associated with such products, the retailer is unable to update demand forecasts by using actual sales data generated from the early part of the season and to respond by replenishing stocks during the season. To overcome this limitation, we examine the case ...

Selling organizations often offer quantity discounts schedules, but do not provide the underlying Quantity Discount Price Functions (QDPF). In literature an analysis on how QDPF could be derived from discount schedules is lacking. This is remarkable as QDPF contain useful information for buying organizations. QDPF give more insight into the fixed and variable costs of selling organizations and ...

Coordinating activities among members of a distribution channel has been a subject of great attention in the past two decades. Among various methods to coordinate independent channel members, a number of studies in the literature suggest quantity discount as a mechanism to achieve incentive-compatible coordination between a manufacturer and his retailer. The rationale behind this coordination m...