We consider a consumer consumption model that takes into account the valuation and demand uncertainties that consumers face while using access services. Typical examples of such services include extended warranties for consumer electronics, club memberships, and telecommunication services....

Firms that offer multiple products are often susceptible to periods of inventory mismatches where one product may face shortages while the other has excess inventories. In this paper, we study a joint implementation of price- and capacity-based substitution mechanisms to alleviate the level of...