The benefits of inventory risk pooling are well known and documented. Eppen (1979) and Corbett and Rajaram (2006) prove that the expected costs of a centralized system are increasing in the degree of (positive) dependence of demand in an idealized newsvendor setting. Using the supermodular...

How should retailers leverage aggregate (category) sales information for individual product demand prediction? Motivated by inventory risk pooling, we develop a new prediction framework that integrates category-product sales information to exploit the benefit of pooling. We propose to combine...

We consider an infinite-horizon multi-product dynamic pricing problem with reference effects in a monopolistic setting, where the reference price is an exponentially weighted average of historical prices. In each period, the demand follows the multinomial logit (MNL) model, where the utility...

How should retailers leverage aggregate (category) sales information for individual product demand prediction? Motivated by inventory risk pooling, we develop a new prediction framework that integrates category-product sales information to exploit the benefit of pooling. We propose to combine...

We consider a duopoly price competition with each firm selling one substitute product to strategic consumers, who assess their willingness to pay based on the reference price and make purchase decisions through the MNL model. The influence of reference price on consumer demand, known as the...