A contract with K-class pricing divides a large set of goods or services into K classes and assigns a single price to any element of a class. Class pricing can be efficient when several different versions may be traded and it is costly to assign individual prices to all of them. It is more...

We propose an approach for determining the sample size required when using an experiment to train and certify a targeting policy. Calculating the rate at which the performance of a targeting model improves with additional training data is a complex problem. We approximate the problem by grouping...

Aesthetics are critically important to market acceptance. In the automotive industry, an improved aesthetic design can boost sales by 30% or more. Firms invest heavily in designing and testing aesthetics. A single automotive “theme clinic” can cost over $100,000, and hundreds are conducted...

quot;Greedoid languagesquot; provide a basis to infer best-fitting noncompensatory decision rules from full-rank conjoint data or partial-rank data such as consider-then-rank, consider-only, or choice data. Potential decision rules include elimination-by-aspects, acceptance-by-aspects,...

We study the division of labor within an industry, formulate it as a generalized make-or-buy problem, and characterize the optimal allocation of work as that minimizing the sum of adjustment-costs within and between firms. Using a unique dataset on eight segments of the global automobile...