This paper studies the role of product availability in attracting consumer demand. We start with a newsvendor model, but additionally assume that stockouts are costly to consumers. The seller sets an observable price and an unobservable stocking quantity. Consumers anticipate the likelihood of...

Game theoretic models require strong informational assumptions that may not hold in operations applications. In such settings, how do uninformed players behave? We take a first step towards addressing this question by conducting a controlled human subject experiment. We focus on a simple...