We begin by thanking our discussants, Jiwoong Shin and K. Sudhir (2009) and Luís Cabral (2009), for their thoughtful comments on our research (Dubé, Hitsch, and Rossi 2009). Both commentaries focus on the stylized (“simple”) model in our article, which we used to motivate our more general empirical model. Shin and Sudhir solve a two-period Hotelling model. They find a U-shaped relationship betw...

We consider a firm selling a fixed amount of inventory to customers who possess uncertain valuations on a product prior to purchase and realize their complete valuations only after purchase. The firm determines the returns policies over two periods; each of which targets for a group of brand loyal customers or regular shoppers. The customers are strategic, taking into account both the product a...

The scratching of pen against paper signaled something at once mundane and momentous. “What is your name, your age, your residence?” asked Harvey Risk, a representative of the Southern Claims Commission. “My name is Mary Blackburn.... My age is about forty-fi ve years. My residence near Middlebrook,” the claimant responded. The commission awarded compensation for property losses during the Amer...