Bandit products have captured significant market shares in China and have started to expand throughout the world. A striking feature of supply chains for bandit products is decentralization, where the upstream firm determines the product quality and the downstream firms compete on prices. We...

Many retailers and manufacturers accept product returns from consumers (via money-back guarantees) and retailers (via full-credit return policies) respectively. While the extant literature focuses on either manufacturer or retailer return policies, this paper investigates both return policies...

This paper investigates the capacity decisions of complementary suppliers who produce different components of a product. The suppliers solicit private forecast information from a retailer who has more precise information as compared to the suppliers regarding the market. In this context, the...

This paper investigates the impacts of transshipment between overconfident newsvendors who perceive the expected outcome of an uncertain event as more certain than it actually is. The conventional wisdom is that transshipment is a risk-pooling strategy for improving newsvendors’ performance....

Firms often encourage and reward existing customers for bringing in new customers. In collaboration with a (top 500) Chinese firm, we conduct one randomized field experiment and find that, although a referral reward unequivocally enhances the existing customers’ incentives to refer new...