Significant evidence has emerged that consumers are boundedly rational and display a sunk cost bias when making decisions. We compare two commonly used pricing schemes, fixed fee and time-based pricing, when customers exhibit sunk cost bias in a service setting with diagnosis and treatment...

Stable alliance structures among monopoly component-suppliers in a decentralized assembly system are somewhat well understood. However, when there are competing suppliers for any particular component, less is known about such alliances. The intent of this paper is to address some of the...

This paper uses a real options approach to analyze investments in process improvement. We develop a simple, stochastic model of a firm making investment decisions in process improvement. Our analysis offers several interesting insights into investments in process improvement. First, early...