Sequential innovation, where a new product is developed to replace an existing product, creates several logistical challenges for innovating firms. We consider a firm that has to make the end-of-life inventory decision (or final build) for an existing product before identifying key performance...

In spite of the fact that many durable products are sold through dealers, the literature has largely ignored the issue of how product durability affects the interactions between a manufacturer and her dealers. We seek to fill this gap by considering a durable goods manufacturer that uses...

New product development in several industries is driven by innovations in underlying technologies. Firms developing new generation products often face the following choice: they can either introduce a product based on a proven and immediately available technology, or delay product introduction...

We develop a theory of insurance claim settlement whose structure embodies an insurer’s capacity decision and negotiation between the insurer and claimant in an asymmetrically informed environment. We offer a solution to an insurer’s choice of upfront claim settlement amount under a...

Firms in a variety of industries offer addon products to consumers who have previously purchased a base-product. We posit that consumers, in making their decision whether to purchase an addon that complements the base-product, find a greater need for the value offered by the addon when the...

The growing sophistication of component technologies and the rising costs and uncertainties of developing and launching new products now require firms to collaborate in the development of new products. However, the management of new product development that occurs jointly between two firms...

We explore the interactions between channel structure and mode of operations (leasing versus selling) and their implications for a manufacturer's willingness to invest in making her product more durable. Using a centralized manufacturer who leases her product as a point of reference, we find...

In this paper, we examine the impact of inventory risk allocation on the sales effort decisions when a firm sells products directly to consumers through independent agents. Building upon a game-theoretic model of a seasonal product whose demand is uncertain, we compare the optimal sales effort,...

It has been recognized that when a durable goods manufacturer sells her output, she has an incentive to produce at a rate that will drive down the market price of her product over time. Because anticipation of declining prices makes consumers less willing to invest in owning the durable good,...