This paper presents a model in which some consumers shop on the basis of price alone, without attention to product quality. A firm may “cheat” (i.e., cut quality) to exploit these inattentive consumers. In the unique symmetric equilibrium, firms follow a mixed strategy involving both price and quality dispersion. Firms are less likely to cheat when there are fewer inattentive consumers, which i...

This paper uses a mechanism design framework to characterize how an intermediary can design profit-maximizing matching markets when agents have private information about their quality. When match surpluses are supermodular, sufficient conditions are provided that ensure positive assortative matching is profit maximizing. Under these conditions, two-sided position auctions are characterized that...

We analyze optimal protection when a benevolent government must maintain nonnegative domestic profits and when the domestic import-competing firm has private information about its costs. A costly audit mechanism can deter strategic manipulation of this private information. We show that a high-penalty/lowprobability of investigation is optimal when the shadow price of the firm profit is low comp...

This paper develops Fuzzy inventory model to determine the relevant profit maximizing decision variable values. The model proposed is based on individual profits of vendor and buyer and joint total profit of them which finds out optimal ordering quantity, selling price and shipment policies. Shortages are allowed for both of them. Production rate, ordering quantity, shortage and holding cost of...

In this paper, a discount model is proposed to coordinate pricing and ordering decisions in a two-echelon supply chain (SC). Demand is stochastic and price sensitive while lead times are fixed. Decentralized decision making where downstream decides on selling price and order size is investigated. Then, joint pricing and ordering decisions are extracted where both members act as a single entity ...

abstract the main aim of the paper is to determine the marketing efficiency of poultry industry in karaj. in this research the marketing margin and the marketing efficiency of poultry market in different level of the market in karaj was calculated. the results showed that slaughter houses gain the main part of marketing margin and marking profit. the share of slaughter house was more that 50 pe...

‎financial market modeling and prediction is a difficult problem and drastic changes of the price causes nonlinear dynamic that makes the price prediction one of the most challenging tasks for economists‎. ‎since markets always have been interesting for traders‎, ‎many traders with various beliefs are highly active in a market‎. ‎the competition among two agents of traders‎, ‎namely trend follo...

O2O (Online to Offline) business model, a kind of new business model between online and offline channel, is put forward by some innovative enterprises. Supply chain decision under O2O business model completely changes price competition in traditional dualchannel supply chains. Operation strategies in O2O supply chains such as price discrimination and service free-riding have become important is...

This paper develops a model of an integrated vendor–buyer supply chain with imperfect production and shortages. We assume that market demand is sensitive to the buyer’s selling price and thus study combined operations and pricing decisions in the supply chain. We first derive the expected profit per unit of time using the well-known renewal-reward theorem, and then maximize profit for the cases...

W every firm in a supply chain bears supply risk (the cost of insufficient supply), some firms may, even with wholesale price contracts, completely avoid inventory risk (the cost of unsold inventory). With a push contract there is a single wholesale price and the retailer, by ordering his entire supply before the selling season, bears all of the supply chain’s inventory risk. A pull contract al...