Most retailers today sell products through an online channel in addition to traditional physical stores. We investigate how such a multi-channel or omni-channel retailer should decide the number and size of physical stores. We show that a higher return rate for online purchases can incentivize...

Many online retailers offer free shipping services if customers spend more than a threshold amount. We use a unique transaction-level dataset from a large online retailer to study the impacts of free shipping threshold on consumer shopping behavior across two different online channels, mobile...

This paper studies how retailers can effectively deliver online and offline information to omnichannel consumers who strategically choose whether to gather information online/offline and whether to buy products online/offline. Information resolves two types of uncertainty: product value...

Algorithms are taking over decision-making in business. In this paper, we study the effects associated with algorithm aversion in a distribution channel comprising one supplier and one retailer. In this context, algorithm aversion is defined as a cognitive bias that the retailer obeys inferior...

We study the effects associated with overconfidence in distribution channels, where overconfidence is defined as a decision maker's cognitive bias in perceiving the expected outcome of an uncertain event as more certain than it likely is. Although overconfidence bias always leads to a lower...