This paper documents a negative relationship between options trading volume and stock returns. The relationship is remarkably robust and cannot be explained by existing asset-pricing theorems. We find that strategies that require buying stocks with low options trading volume in the past and...

This paper presents the multinomial logit model with repeated customer interactions. In each period, the same customer selects a product from the assortment recommended in that period or opts out. It captures the essence of an increasingly popular business model called the subscription box,...

This paper develops a signal game model to investigate the impact of ambiguity aversion on small and medium-sized enterprises (SME) investment in incomplete markets with asymmetric information. Information asymmetry has twofold effects on SMEs' investment decisions. First, in a separating...

Although assortment optimization has been extensively studied, not much is known about how it is affected by advertising. In this paper, we address this gap by considering a novel joint advertising and assortment optimization problem. To capture the effect of advertising in the context of...