This paper proposes a new methodology to solve partially observed inventory problems. Generally, these problems have infinite dimensional states that are conditional distribution of the inventory level. Our methodology involves linearizing the state transitions via unnormalized probabilities. It...

Cooperative advertising is a key incentive offered by a manufacturer to influence retailers' promotional decisions. We study cooperative advertising in a dynamic retail duopoly where a manufacturer sells his product through two competing retailers. We model the problem as a Stackelberg...