We empirically examine the impact of expanded product variety on demand concentration using large data sets from the movie rental industry as our test bed. We find that product variety is likely to increase demand concentration, which goes against the “Long Tail effect” theory predicting...

Firms commonly undertake philanthropic campaigns as a means of attracting and retaining customers. Such campaigns often take the form of charity-linked promotions, whereby a firm donates a specific amount to a charitable cause when a customer takes up the promotion through a related purchase. We...

We study production networks of automotive assembly plants to shed new light on the impact of flexibility on plant productivity. We observe that the contemporary manufacturing networks of automotive assembly plants of three US companies (Chrysler, Ford and General Motors) have become less...

Driving is an integral component of many operational systems, and any small improvement in driving quality can have a significant effect on accidents, traffic, pollution, and the economy in general. However, making improvements is challenging given the complexity and multidimensionality of...

We study price competition in markets with a large number (in magnitude of hundreds or thousands) of potential competitors. We address two methodological challenges: simultaneity bias and high dimensionality. Simultaneity bias arises from joint determination of prices in competitive markets. We...

While there is overwhelming support for the negative consequences of product recalls, empirical evidence of operational drivers of recalls is almost non-existent. In this study, we identify product-variety (measured as the number of factory installed options), plant-variety (measured as the...

Problem Definition: A large proportion of the world's population has no access to electricity and so relies on noxious kerosene for their lighting needs. Solar-based solutions require a large upfront investment and are often unaffordable in this market owing to consumers' tight liquidity...

To analyze incentives for investing in the capacity to generate renewable electricity, we model the trade-off between renewable (e.g. wind) and nonrenewable (e.g. natural gas) technology. Renewable technology has a higher investment cost and yields only an intermittent supply of electricity;...

Problem definition: Fast recovery from sourcing interruptions is a key objective for global supply chains and for business continuity professionals. In this paper, we study the impact of different supply chain strategies—supplier diversification and the use of long-term relationships—on the...