Showing 1 - 8 of 8
Prior literature has shown that, for a symmetric information setting, supplier encroachment into a reseller's market can mitigate double marginalization and benefit both the supplier and the reseller. This paper extends the investigation of supplier encroachment to the environment where the...
Persistent link: https://www.econbiz.de/10013066475
We consider an <i>M</i>/<i>M</i>/1 queueing system with impatient consumers who observe the length of the queue before deciding whether to buy the product. The product may have high or low quality, and consumers are heterogeneously informed. The firm chooses a slow or (at a cost) a fast service rate. In...
Persistent link: https://www.econbiz.de/10010990527
Technology transfer to low-cost locations offers global firms an opportunity to reduce their variable costs involved in serving emerging markets. However, such moves may also make imitation by local competitors easier. As a consequence, technology transfer may create competition in the local...
Persistent link: https://www.econbiz.de/10009197798
Remanufacturing is a production strategy whose goal is to recover the residual value of used products. Used products can be remanufactured at a lower cost than the initial production cost, but consumers value remanufactured products less than new products. The choice of production technology...
Persistent link: https://www.econbiz.de/10009204215
We consider a monopolist expert offering a service with a "credence" characteristic. A credence service is one in which the customer cannot verify, even after a purchase, whether or not the amount of prescribed service was appropriate; examples include legal, medical, or consultancy services, and...
Persistent link: https://www.econbiz.de/10009208624
In the health-care domain, diagnostic service centers provide advice to patients over the phone about what the most appropriate course of action is based on their symptoms. Managers of such centers must strike a balance between accuracy of advice, callers' waiting time, and staffing costs by...
Persistent link: https://www.econbiz.de/10009214671
Based on a supply chain framework, we study the stocking decision of a downstream buyer who receives private demand information and has the incentive to influence her capital market valuation. We first characterize a market equilibrium under a general, single buyback contract. We show that the...
Persistent link: https://www.econbiz.de/10010990497
We study how a manager's short-term interest in the firm's market value may motivate channel stuffing: shipping excess inventory to the downstream channel. Channel stuffing allows a manager to report sales in excess of demand in order to influence investors' valuation of the firm. We apply an...
Persistent link: https://www.econbiz.de/10009204404