Game theoretic analysis of a supplier-retailer system in a two-period newsvendor setting reveals that, on the part of the retailer, committing to disposal of inventory, that is to discard unsold inventory, rather than carryover to the next period, is preferred, under certain conditions, because...

Much of experimental research in marketing has focused on individual choices. Yet in many contexts, the outcomes of one’s choices depend on the choices of others. Furthermore, the results obtained in individual decision making context may not be applicable to these strategic choices. In this...