Taxes levied on retail sales are a ubiquitous form of taxation, both in the US and abroad. While considerable study has examined the economic effects of such sales taxes vis-a-vis consumer demand, surprisingly little attention has been focused on the effects up the supply chain. In this paper, we consider a parsimonious model of retail products sold in a variety of consumer markets (each of whi...

We consider a supply chain where one manufacturer sells products to local markets through dealers. Each dealer faces a geographically dispersed market with uncertain demand, and is able to observe demand signal and exert effort to enhance sales. Both signal and effort affect the sales outcomes probabilistically, and cannot be observed by the manufacturer. Furthermore, dealers’ signals are corre...

We develop a model in which a profit-maximizing monopolist with uncertain cost of production sells to loss-averse, yet rational, consumers. We first introduce (portable) techniques for analyzing the demand of such consumers, and then investigate the monopolist’s pricing strategy. Compared to lower possible purchase prices, paying a higher price in the firm’s pricing distribution is assessed by ...

This study investigates the channel coordination issue of a supply chain with a risk-neutral manufacturer and a loss-averse retailer facing stochastic demand that is sensitive to sales effort. Under the loss-averse newsvendor setting, a distribution-free gain/loss-sharing-and-buyback (GLB) contract has been shown to be able to coordinate the supply chain. However, we find that a GLB contract re...

We determine empirically how the Big Three automakers accommodate shocks to demand. They have the capability to change prices, alter labor inputs through temporary layoffs and overtime, or adjust inventories. These adjustments are interrelated, non-convex, and dynamic in nature. Combining weekly plant-level data on production schedules and output with monthly data on sales and transaction price...

In particular business transactions, the supplier usually provides an admissible delay in settlement to its vendor encourage further sales. Additionally, demand for commodity is inversely proportional function of sales price, which non-linear and, some situations, a holding cost rises over time. Moreover, many goods often deteriorate consistently and shall not be sold after their expiration dat...

Under conventional models, subsidizing energy efficiency requires electricity to be priced below marginal cost. Its benefits increase when electricity prices increase to finance the subsidy. With high prices, subsidies are counterproductive unless consumers fail to make efficiency investments when private benefits exceed costs. If the gain from adopting efficiency is only reduced electricity sp...

Game theory is an efficient tool to represent and conceptualize the problems concerning conflict and competition. In recent years and especially for durable products, competition between domestic and foreign brands for gaining market share has received a considerable attention. This paper study electronic commerce concepts by differential game theory and introduce a novel and comprehensive mode...

Strong seasonality in demand, a short product life cycle, and the absence of any price competition make the release date of first-run movies one of the main strategic decisions taken by movies’ distributors. These endogenous timing decisions, in turn, generate a strong seasonal pattern of release dates. Therefore, the observed seasonal pattern of sales is a combination of both seasonality in un...

This essay puts forward a cruise pricing model based on improved quantum particle swarm optimization, aiming at optimizing the pricing strategy and realizing the maximum sales income expected. Firstly, we combine the two factors – actual booking records and expected booking records in the process of cruises pricing – and improve the dynamic price-setting model based on demand learning put forwa...