We consider a dual channel supply chain in which a manufacturer sells a single product to end-users through both a traditional retail channel and a manufacturer-owned direct online channel. We adopt a commonly used linear demand substitution model in which the mean demand in each channel is a...

Problem definition: In this e-commerce age, majority manufacturers sell products through online channels in addition to retail channels. This leads to dual channel competition and channel conflict. One popular operation in practice to reduce channel conflict is through increasing channel...

In the mobile video games industry, in-app purchases are a major source of revenue. A common in-app purchase is for additional "moves" or "time" in puzzle games. We call these in-app purchases "bonus actions". In some games, bonus actions can only be purchased in advance of attempting a level of...

Microtransactions for functional items bring mixed results for game publishers. It is not clear why microtransactions are successful with FIFA 20 and Clash of Clans, but not with Star Wars Battle Front II. The effects of players' fairness concerns on a publisher's strategy are investigated. A...

The open source paradigm is often defined as a collaborative effort, implying that firms and consumers come together in a non-competitive climate. We show here that open source development can arise from a competitive climate. Under competition, we find that open source is the surplus maximizing...

We analyze optimal advertising spending in a duopolistic market where each firm's market share depends on its own and its competitor''s advertising decisions, and is also subject to stochastic disturbances. We develop a differential game model of advertising in which the dynamic behavior is...