We incorporate the concept of fairness in a conventional dyadic channel to investigate how fairness may affect channel coordination. We show that when channel members are concerned about fairness, the manufacturer can use a simple wholesale price above her marginal cost to coordinate this...

We propose a behavioral theory to predict actual ordering behavior in multi-location inventory systems. The theory rests on a well-known stylized fact of human behavior: People's preferences are reference-dependent. We incorporate reference-dependence into the newsvendor framework by assuming...

We propose a behavioral theory to predict actual ordering behavior in multilocation inventory systems. The theory rests on a well-known stylized fact of human behavior: people's preferences are reference dependent. We incorporate reference dependence into the newsvendor framework by assuming...

The widespread implementation of customer relationship management technologies in business has allowed companies to increasingly focus on both acquiring and retaining customers. The challenge of designing incentive mechanisms that simultaneously focus on customer acquisition and customer...

We study competitive positioning and pricing strategies in markets where consumers seek variety. Variety seeking behavior is modeled as a decrease in the willingness to pay for the product purchased on the previous purchase occasion. Using a three-stage Hotelling-type model, we show that the...

Many retailers designate one national brand manufacturer in each product category as a "category captain" to help manage the entire category. A category captain may perform demand-enhancing services such as better shelf arrangements, shelf-space management, and design and management of in-store...

This year marks the 50th anniversary of Management Science. We take this opportunity to trace the history of the Marketing Department in Management Science, outline the role that the Marketing Department has played in supporting management science research in Marketing, its impact on the field,...

The value of new information depends on how accurate the information is, but it may also depend on the characteristics of the firm and the nature of the industry it operates in. We develop a game-theoretic model to understand how firm and industry characteristics moderate the effect of market...

This paper analyzes the role played by brand loyalty in determining optimal price promotional strategies used by firms in a competitive setting. (Loyalty is operationalized as the minimum price differential needed before consumers who prefer one brand switch to another brand.) Our objective is...

We examine the problem of pricing in a market where one brand acts as a price leader. We develop a procedure to estimate a leader's price rule, which is optimal given a sales target objective, and allows for the inclusion of demand forecasts. We illustrate our estimation procedure by calibrating...