With the development of the Internet and E-commerce, retailers often offer pre-orders for new to-be-released products. To encourage pre-orders, retailers such as Amazon offer pre-order price guarantee (PG). That is, if the product price drops before or on the release date, pre-order consumers...

Is demand uncertainty a devil? A conventional thought is that demand uncertainty hurts a seller's profit. However, we show that demand uncertainty could favor a seller if the pricing mechanism is designed properly. Specifically, we study the optimal pricing strategy in advance selling with both...

Reward advertising is an emerging monetization mechanism for app developers in which consumers choose to view ads in exchange for apps’ premium content. We provide the first economic analysis of reward advertising by studying the implications of offering reward ads, either by itself, or in...

This paper investigates an emerging monetization mechanism for app developers – reward advertising. With reward ads, consumers have an option to view ads in exchange for a reward such as premium content. We investigate when and how an app developer should adopt reward ads as a mechanism for...