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Markdown as a pricing modality is ubiquitous in retail whereas everyday-low-price (EDLP) remains relatively rare (despite its several advantages, such as simplicity). Using a stylized model, we explore whether and why retailers can use either of these pricing modalities as an effective defense...
Persistent link: https://www.econbiz.de/10012902899
Diagnostic errors are prevalent and can result in severe patient harm. Identifying a correct diagnosis often necessitates significant diagnostic effort. Nonetheless, most physician payment schemes are procedure-based and do not account for diagnostic effort or accuracy, due to observability...
Persistent link: https://www.econbiz.de/10013298154
In this paper we develop an approach to dynamic pricing that combines ideas from data-driven and robust optimization to address the uncertain and dynamic aspects of the problem. In our setting, a firm offers multiple products to be sold over a fixed discrete time horizon. Each product sold...
Persistent link: https://www.econbiz.de/10014044134
In this paper, we develop a model for the adoption of solar photovoltaic technology by residential consumers. In particular, we assume consumers purchase these solar panels according to a discrete choice model. The technology adoption process is reinforced by network externalities such as...
Persistent link: https://www.econbiz.de/10014044135
We study the problem of optimizing a tree-based ensemble objective with the feasible decisions lie in a polyhedral set. We model this optimization problem as a Mixed Integer Linear Program (MILP). We show this model can be solved to optimality efficiently using Pareto optimal Benders cuts. For...
Persistent link: https://www.econbiz.de/10014120704
We study a model of competition with multiple suppliers who sell green technology products, such as electric vehicles. The government offers consumer subsidies to encourage adoption. We consider a setting where suppliers adjust price and production quantities depending on the level of subsidies...
Persistent link: https://www.econbiz.de/10014135620
We study strategic capacity investment problems in joint ventures (JVs) with fixed-rate revenue sharing contracts. We distinguish two types of JVs, depending on how individual resources determine the effective capacity of a JV. Despite its popularity across many industries, JVs tend to suffer...
Persistent link: https://www.econbiz.de/10012902108