In-store promotions are a highly effective marketing tool that can have a significant impact on revenue. In this research, we study the question of dynamic promotion planning in the face of Bounded-Memory Peak-End demand models. In order to determine promotion strategies, we establish that a...

In this paper, we develop a model for the adoption of solar photovoltaic technology by residential consumers. In particular, we assume consumers purchase these solar panels according to a discrete choice model. The technology adoption process is reinforced by network externalities such as...

In the economics literature, the Consumer Surplus is traditionally defined for the case where demand is a deterministic function of the price. However, in most operations management problems, demand is assumed to be stochastic, and hence stock-outs can occur. To measure consumer welfare in such...

How should a firm price a new product for which little is known about demand? We propose a simple pricing rule: the firm only estimates the maximum price it can charge and still expect to sell at least some units, and then sets price as though the actual demand curve were linear. We show that if...

How should a firm price a new product for which little is known about demand? We propose a simple pricing rule: the firm only estimates the maximum price it can charge and still expect to sell at least some units, and then sets price as though the actual demand curve were linear. We show that if...

How should a firm price a new product for which little is known about demand? We propose a simple and practical pricing rule for new products where demand information is limited. The rule is simple: Set price as though the demand curve were linear. Our pricing rule can be used if three...