Many firms in the business to consumer market sell identical products online using auctions and posted prices at the same time. In this paper, we develop and analyze a model of the key tradeoffs sellers face in such a dual-channel setting that is built around the interplay of three design...

A growing number of firms are strategically utilizing IT and the Internet to provide online services to consumers who buy their products. Online services differ from traditional services, such as maintenance services, because they often promote interactivity among the firm’s customers and...

In this study, we model firms that sell a product and a complementary online service, where only the latter displays positive network effects. That is, the value each consumer derives from the service increases with the total number of consumers that subscribe to the service. In addition, the...

We use a simulation to study the profitability of selling consumer goods online using posted price and auction simultaneously. We consider the open ascending-bid auction mechanism and develop a model of consumers' behavior when faced with the choice between the two channels. With the simulation...

We model a spot market in a make-to-stock industry with two types of suppliers: A type 1 supplier faces stochastic contracted demand and has access to the spot market for liquidating surplus, while a type 2 supplier produces only for the spot market. We find the production quantity equilibrium...

The Internet enables sellers to offer products through multiple channels simultaneously. In particular, many sellers utilize online auctions in parallel to other online and offline channels. Using an analytical model and data from eBay Motors, we study seller behavior and auction outcomes in the...

Previous studies suggested that a monopoly durable goods seller can useleasing to effectively avoid the time-inconsistent problem raised byCoase Conjecture. This paper extends those previous works by examiningthe monopoly seller's selling and leasing strategy for a special type ofdurable good...