Showing 1 - 10 of 14
Persistent link: https://www.econbiz.de/10014369444
Most common queueing models used for service system design assume the servers work at fixed (possibly heterogeneous) rates. However, real-life service systems are staffed by people, and people may change their service speed in response to incentives. The delicacy is that the resulting service...
Persistent link: https://www.econbiz.de/10014036346
Motivated by the growing significance of contingent free shipping (CFS) policies in the e-commerce industry, we investigate the optimal CFS and pricing decisions for online retailers. Under a CFS policy, consumers enjoy free shipping for orders exceeding a certain threshold value; otherwise, they...
Persistent link: https://www.econbiz.de/10012823463
This paper studies probabilistic selling with vertically differentiated products when firms compete and consumers anticipate the potential post-purchase regret raised by possibly obtaining the inferior products. Intuitively, anticipated regret hurts the attractiveness of probabilistic selling....
Persistent link: https://www.econbiz.de/10012981806
We consider a ride-hailing platform that provides free information to taxi drivers. Upon receiving a rider's request, the platform broadcasts the rider's origin and destination to idle drivers, who accept or ignore the request depending on the profitability considerations. We show that providing...
Persistent link: https://www.econbiz.de/10012909510
We study advance selling and upgrading in a priority queue setting that emerges in the amusement park industry. Customers choose to buy fast-track or regular tickets depending on their heterogeneous waiting costs. At the park entrance, customers can choose tickets based on the observed...
Persistent link: https://www.econbiz.de/10014344010
We propose and analyze a sequential design of price experimentation that balances the learning and earning trade-off in revenue management. Assuming the demand function belongs to a parametric family with an unknown parameter value, we derive a closed-form stopping rule based on the realized...
Persistent link: https://www.econbiz.de/10013298808
With the emergence of technologies such as electronic shelf labels, some grocery retailers had begun to trial intra-day time-based pricing where they charge higher prices during congested peak hours. Such industry trend along with the influence of pandemic has motivated us to examine whether,...
Persistent link: https://www.econbiz.de/10014087779
We study a duopoly vertical competition in which one firm sells a transparent product and the other sells an uncertain product that may induce consumer feelings. We identify a neutrality condition under which those feelings do not affect either firm’s profit, but this neutrality can be broken....
Persistent link: https://www.econbiz.de/10014091124
We consider an assemble-to-order system with a high volume of prospective customers arriving per unit time. Our objective is to maximize expected infinite horizon discounted profit by choosing product prices, component production capacities, and a dynamic policy for sequencing customer orders...
Persistent link: https://www.econbiz.de/10005818972