Based on a supply chain framework, we study the stocking decision of a downstream buyer who receives private demand information and has the incentive to influence her capital market valuation. We first characterize a market equilibrium under a general single contract offer. We show that the...

This paper examines the economic effects of the fulfillment services offered by Amazon (FBA) to the third-party sellers on its retail platform (Amazon 2018). Logistics is critical for e-commerce. By FBA, the service levels of the third-party sellers are substantially improved, and so is their...

The large e-commerce platforms now not only provide a venue for the third-party sellers to sell their products but also provide financing services for them. In this paper, we study the impacts of such platform financing on the profits of a supply chain and the platform, as compared to the...

This paper examines how managerial short-termism can affect a firm's inventory decision when external investors have only partial information about the firm's demand uncertainty. We first study the scenario where the manager's short-termism is exogenously given. We derive the full equilibrium...

In practice, interest expense can account for a large proportion of firms' costs, while the interest rate is often influenced by a firm's market prospect. In the presence of information asymmetry, a firm may have an incentive to borrow a larger amount, thereby signaling a high prospect to the...

This paper studies the effects of international taxation on multinational firms' production outsourcing strategies, which has attracted recent attention from both practitioners and legislators. We find that under the territorial tax system, the presence of global tax disparity may result in...

Department: Graduate School of Business.

We consider a powerful original equipment manufacturer (OEM) who relies on a contract manufacturer (CM) to produce her product. In addition to the OEM's product, the CM also produces for a less powerful OEM. The two products not only are engaged in Cournot competition in the consumer market, but...

This paper considers a firm that sells a product with a finite inventory to a market with a random population size. Each customer's valuation of the product consists of two components: the customer's intrinsic value of the product which is privately known by him before purchase, and the...

Problem definition: We study how a firm should design its compensation plan to include both the sales performance and the operational performance (i.e., the supply/demand mismatch), for its sales division, who not only exerts unobservable demand-enhancement efforts but also makes the inventory...