We study a seller's optimal pricing and inventory strategies when behavioral (non-pecuniary) motives affect consumers' purchase decisions. In particular, the seller chooses between two pricing strategies, markdown or everyday-low-price, and determines the optimal prices and inventory level at...

Daily deal websites help small local merchants to attract new consumers. A strategy adopted by some websites is to continually track and display the number of deals sold by a merchant. We investigate the strategic implications of displaying deal sales and the website's incentive to implement...

This is the online appendix to the paper titled "Strategic Value of High-Cost Customers" that is forthcoming in Management Science. The abstract for the paper is given below. This online appendix provides the proofs for extensions when customers are forward-looking, when there are three customer...