We introduce and analyze an inter-temporal choice model where customer valuations are uncertain and evolve over time. The model leads directly to the study of call options on capacity that are similar to partially refundable fares. We show that the capacity provider earns significantly higher...

This paper is concerned with a periodic-review inventory system with three consecutive delivery modes (fast, medium, and slow) and demand forecast updates. At the beginning of each period, the inventory level and demand information are updated and decisions on how much to order using each of the...

We study contracts between a single retailer and multiple suppliers of two substitutable products, where suppliers have fixed capacities and present the retailer cost contracts for their supplies. After observing the contracts, the retailer decides how much capacity to purchase from each...

We present tight bounds and heuristics for personalized, multi-product pricing problems. Under mild conditions we show that offering a non-personalize price in the direction of a positive vector (factor) has a tight profit guarantee relative to optimal personalized pricing. An optimal...

A growing body of research suggests that an abundance of choices can lead to decision-making difficulties for consumers. Rather than maximizing utility, many consumers employ a satisficing decision-making approach, whereby they search for products sequentially until they find one that is...

Two-sided marketplaces have grown rapidly over recent years and are ubiquitous in daily life. One important challenge is to design the marketplace to support the sustainability and efficiency of the ecosystem. This paper investigates the roles of selling formats in a two-sided marketplace with...

Exponential bandits are widely adopted in economics and marketing due to their tractability. This paper analyzes the one-agent multi-armed account of exponential bandits, where the agent dynamically selects arms to maximize total payoff. We motivate our base model by examples with arms being of...

In this paper, we study how a profit-maximizing platform implements a new policy, from which a representative retailer also experiences a private externality. Our analysis suggests that: (1) when the policy is highly valuable for the platform’s own interest, the platform may charge a fee from...

Live-streaming advertising in e-commerce is soaring. Both Amazon and Alibaba have employedthis novel marketing model to engage consumers by sequentially exhibiting differentproducts through live-streaming videos. In this paper we adopt a mechanism design frameworkto model live-streaming...

We generalize the concept of K-convexity to an n-dimensional Euclidean space. The resulting concept of K-convexity is useful in addressing production and inventory problems where there are individual product setup costs and/or joint setup costs. We derive some basic properties of K-convex...