We extend Schmittlein et al.'s model (1987) of customer lifetime value to include satisfaction. Customer purchases are modeled as Poisson events and their rates of occurrence depend on the satisfaction of the most recent purchase encounter. Customers purchase at a higher rate when they are...

Game theoretic models require strong informational assumptions that may not hold in operations applications. In such settings, how do uninformed players behave? We take a first step towards addressing this question by conducting a controlled human subject experiment. We focus on a simple...