Retailers often face a newsvendor problem, i.e., they must order their inventory prior to a short selling period with uncertain demand. The uncertainty can be reduced by advance selling because not only are advance orders certain, but the remaining demand can be better forecasted. Consumers,...

Advance selling through pre-orders is a strategy to transfer inventory risk from a retailer to consumers. A newsvendor retailer can have three strategies to choose from: no advance selling allowed (NAS), moderate advance selling with a moderate discount for pre-orders (MAS), and deep advance...