Backward induction is a widely accepted principle for predicting behavior in sequential games. In the classic example of the "centipede game," however, players frequently violate this principle. An alternative is a "dynamic level-k" model, where players choose a rule from a rule hierarchy. The...

We consider a supply chain with a single supplier and two retailers. The retailers choose their orders strategically, and if their orders exceed the supplier's capacity, quantities are allocated proportionally to the orders. We experimentally study the capacity allocation game using subjects...

Considering the unclear nuclear future of Japan after Fukushima Dai-ichi nuclear power plant accident since Mar. 11, 2011, this study assesses a series of energy consumption scenarios including the reference scenario, nuclear limited scenarios and current nuclear use level scenario for Japan in...

Energy–exergy analysis and parameter design optimization of the KCS-11 solar system with an auxiliary superheater are studied in low-grade thermal energy conversion (LTEC). Firstly, from a thermodynamics point of view, the corresponding calculation model is built to solve the system state...

This paper studies a monopolist firm selling a fixed capacity. The firm sets a price before demand uncertainty is resolved. Speculators may enter the market purely with the intention of resale, which can be profitable if demand turns out to be high. Consumers may strategically choose when to...

This paper studies the role of product availability in attracting consumer demand. We start with a newsvendor model, but additionally assume that stockouts are costly to consumers. The seller sets an observable price and an unobservable stocking quantity. Consumers anticipate the likelihood of...

In kidney allocation, transplant candidates may have private information about their propensity to enjoy good outcomes after transplantation or about their relative expected improvement in quality of life after transplantation. This paper develops a mechanism design model to investigate the...

This paper studies the impact of strategic customer behavior on supply chain performance. We start with a newsvendor seller facing forward-looking customers. The seller initially charges a regular price but may salvage the leftover inventory at a lower salvage price after random demand is...