We study the informational role stock-outs may play when consumers have heterogeneous information about the quality of a firm's product. Typically, in a newsvendor world, matching uncertain demand with inventory leads inevitably to stock-outs. When, in addition, consumers are heterogeneously...

A classic example that illustrates how observed customer behavior impacts other customers' decisions is the selection of a restaurant whose quality is uncertain. Customers often choose the busier restaurant, inferring that other customers in that restaurant know something that they do not. In an...

When customers arrive, service providers often collect information to generate delay forecasts. We study how delay data-collection and forecasting systems can be designed to improve customer satisfaction. We assume that customers may be loss-averse in the sense that an increase in the expected...