We investigate the impact of strategic consumer behavior on retailers' dynamic pricing decisions. We present a stylized two-period model, and test the equilibrium predictions in a set of behavioral experiments in which human subjects played the role of pricing managers. Our main insight is that...

We study the interaction between the design of a premium-status loyalty program, revenue management, and strategic consumer behavior. Specifically, we consider a contemporaneous change where firms across several industries switch their loyalty programs from quantity-based to spending-based...

Recent advances in information technology, advanced manufacturing (robotics, 3D printing, etc.) and logistics allow firms to customize their products to the specifications of individual consumers, who, of course like such products more than the standard ones. However, in an unlikely event that...

It seems rather intuitive that customers who pay higher prices for otherwise identical products/services should be more valuable to the firm. However, we show that in dynamic pricing situations with limited capacity (airlines, hotels, advertisers, sports/concert venues, etc.) this intuition...