This paper investigates the capacity investment decision of a supplier who solicits private forecast information from a manufacturer. To ensure abundant supply, the manufacturer has an incentive to inflate her forecast in a costless, nonbinding, and nonverifiable type of communication known as...

Exploring the tension between theory and practice regarding complexity and performance in contract design is especially relevant. The goal of this paper is to understand why simpler contracts may commonly be preferred in practice despite being theoretically suboptimal. We study a two-tier supply...

We study a manufacturer's problem of managing his direct online sales channel together with an independently owned bricks-and-mortar retail channel, when the channels compete in service. We incorporate a detailed consumer channel choice model in which the demand faced in each channel depends on...

We measure the value of promotional activities and referrals by content creators to an online platform of user-generated content. To do so, we develop a modeling approach that explains individual-level choices of visiting the platform, creating, and purchasing content as a function of consumer...

The experimental work demonstrates that markets have the capacity to collect information through a process of equilibration and that fact suggests the feasibility of creating a system of markets that have only a purpose of gathering information. The laboratory work suggests that theory and...