This paper develops a novel analytical framework to study how firms should design a product by choosing its recyclability and price in markets where consumers care for the environment and make not only purchase but also disposal decisions when the product reaches end-of-life. Under a linear...

Should a provider deliver a reliable service or should it allow for occasional service failures? This paper derives conditions under which randomizing service quality can benefit the provider and society. In addition to cost considerations, heterogeneity in customer damages from service failures...