Strategic inventory plays a vital role in a manufacturer-retailer dynamic contract. By holding inventories in a period, the retailer curtails the manufacturer’s pricing power in the next period and alleviates double marginalization, significantly increasing the manufacturer’s and...

The biggest drawback of online shopping lies in consumers' uncertainty about the product. Before making a purchase decision, consumers receive product information from many sources which helps them infer whether a product meets their preferences. This information constitute a positive or a...

Many models in operations management assume that faced with excess inventory, retailers offer price discounts to increase sales. This discount is assumed to be a certain dollar amount per unit or a certain percent of the regular price. However, many retailers use nonlinear pricing, e.g. "Buy...