We study hedging cash flow risks in a supply chain where firms invest internal funds to improve production efficiencies. We offer a decomposition framework to capture the cost reduction and flexibility effect of hedging. It allows us to understand how a firm's hedging choice depends on its...

Consider a publisher of online display advertising that sells its ad resources in both an upfront market and a spot market. When planning its ad delivery, the publisher needs to make a trade-off between earning a greater short-term profit from the spot market and improving advertising...

Established findings suggest that strategic inventory may alleviate double marginalization and improve the efficiency of a decentralized distribution channel. In this paper, we examine the effect of strategic inventory in the presence of chain-to-chain competition. We show that as the...

Corporate income tax (CIT), as an important economic instrument in most jurisdictions, constitutes a significant portion of financial costs in business operations. It is known that the structure of tax function, accounting method and loss carryover policy have significant impacts on a firm's...

Two-invoice mechanism (TIM) was introduced by the Chinese government with the purpose of reducing pharmaceutical prices. This paper studies the impact of the TIM on a pharmaceutical supply chain consisting of a manufacturer, buyer, and agent (in the absence of a TIM) or a third-party (in the...

We consider a service market with two firms that provide regular and premium services respectively. Customers are delay sensitive and heterogeneous on evaluating the service level. We show that the service differentiation, together with customer heterogeneity, results in market segmentation...

We study a strategic information management problem in the export-processing trade, where the buyer controls the raw material input and sales and the producer is responsible for production. The production is vulnerable to random yield risk. The producer can exert a costly effort to acquire the...

This study analyzes a monopolistic seller’s optimal differential pricing problem with strategic consumers connected in social networks. The consumers who purchase in the later period can get positive externality from their friends who purchased in the early period but have to bear a utility...

We consider a periodic-review perishable inventory system with multiple demand classes, each characterized by a different lost-sales cost and a least freshness requirement. Demands of different classes in the same period can be correlated, while demands across periods are independent but not...