Product service plays a crucial role for brands to retain customers and spur revenue growth. It is, however, often outsourced to a third-party supplier, driven by cost savings and the ability to focus on core businesses. While there is a large body of literature studying service outsourcing, the...

In a world advancing toward Artificial Intelligence (AI), we explore how AI creates and delivers value in procurement. AI has two unique abilities: automation and smartness, which are associated with physical machines or software that enable us to operate more efficiently and effectively. In...

We study persuasion mechanisms in linear environments. A privately informed receiver chooses between two actions. A sender designs a persuasion mechanism that can condition the information disclosed to the receiver on the receiver's report about his type. We establish the equivalence of...

The literature on uncovered interest rate parity (UIP) shows two empirical puzzles. One is the failure of UIP, and the other is the unstable coefficients in the UIP regression. We propose a time-varying coefficients model with stochastic volatility and US structural shocks (TVC-SVX) to study how...

In this paper, we study a regretful seller’s problem of selling a fixed number of goods over a finite and known time horizon. The seller engages in counterfactual thinking to compare her selected price with other forgone alternatives. If a forgone alternative (ex post) generates a better...

This paper investigates the capacity decisions of complementary suppliers who produce different components of a product. The suppliers solicit private forecast information from a retailer who has more precise information as compared to the suppliers regarding the market. In this context, the...