A firm may cut costs by installing more parts than its products require. Each product or application requires a specified number of parts such as inductors, resistors and capacitors. For assembly and maintenance reasons, parts are grouped into subassembly modules. If there are economies of scale...

This paper examines the strategic rivalry in a duopoly where firms must correctly time the construction of the first plant in a growing market. We explicitly model rivalry for market share. Firms recognize the effect of the rival's actions on their profits; they behave noncooperatively to...

In this paper we solve a dynamic multilocation problem. Time is continuous, and demands can grow at varying rates in different markets and at different times. There are economies of scale in building plant capacity. To solve such a problem conditional on a prescribed sequence, we show how to use...

In this paper "Optimal and Near Optimal Price and Advertising Strategies," Welam (Welam, Ulf P. 1982. Optimal and near optimal prize and advertising strategies. Management Sci. 28 1313--1327.) considers a model which is similar to a model analyzed by Gould (Gould, John P. 1970. Diffusion...

This paper considers the question of how a sales manager should design the optimal compensation scheme for his salesforce when it consists of salespersons of varying selling skills, i.e., when the salesforce is heterogeneous. The manager's problem is to reward the salespersons based on...

This paper develops a modeling framework for making promotions decisions. In contrast to some of the prior research, the framework explicitly models promotions. Its central feature is the view of promotions competition as a multistage game in which regular prices are chosen first, followed by...

This paper is concerned with how retailers, supermarkets in particular, communicate price discounts and use unadvertised specials. A common practice for supermarkets is to communicate price deals on some products through newspaper advertisements, while communicating discounts on other products...

This paper characterizes the manufacturer warranty policy and its effect on consumer behavior under the following conditions: consumers are heterogeneous in risk-preferences, consumer actions affecting the probability of warranty redemption are unobservable to the manufacturer, and the product...