We present a framework to measure empirically the size of indirect network effects in hightechnology markets with competing incompatible technology standards. These indirect network effects arise due to inter-dependence in demand for hardware and compatible software. By modeling the joint determination of hardware sales and software availability in the market, we are able to describe the nature...

This research develops two models to consider retailer sales promotion and manufacturer trade under demand uncertainty. The objective of the first model is determine retailer’s optimal promotional effort order quantity while maximizing profit exogenous promotion. second extends manufacturer’s endogenous decisions. For these models, three different policies (off-invoice, scan-back, unsold-discou...

This paper analyses the empirical demand data for fast moving consumer goods to measure the Bullwhip-effect. The data consist of the sell-in from a large manufacturer to the retailers and the sellout from a retailer to the consumers. Our findings show that the Bullwhip-effect can be substantial. Indeed, in more than 50% of the cases, the demand upstream (sell-in) is twice as variable as the dem...

A large body of experimental evidence suggests that people are loss averse. Inspired by this evidence, we develop a model in which a monopolist 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. In contrast to the standard monopoly model, we find that in relat...

The main objective of this report is to describe a decision-support system for dynamic retail pricing and promotion planning. Our weekly demand model incorporates price, reference price effects, seasonality, article availability information, features and discounts. Building on previous research, we quantify demand interdependencies and integrate the resulting profitlifting effects into the opti...

Good marketing decisions require managers’ understanding of the response function relating performance measures to variations in the marketing mix. We use unit-root techniques to address market response in evolving markets, with a focus on their response to price promotions. We distinguish between evolution at the primary-demand vs. selective-demand level, and examine four consumer product cate...

The case study conducted in this paper looks at residential water pricing from three different points of view. It first describes existing urban water-pricing practices in Southern France, emphasizing that pricing is not yet being used as a tool for providing economic incentives to save water. It then looks at the observed impact of pricing on water consumption, through an econometric analysis ...

We study the prevalence of endogenously driven multi-attribute reference effects in a revenue management setting based on data of individual level purchases over a series of concert performances. The reference dependence that drives consumer choice is not only based on the price but also on observed sales (as a fraction of the seating capacity). We show that consumers set their own internal pri...

We propose the new Top-Dog-Index, a measure for the branch-dependent historic deviation of the supply data of apparel sizes from the sales data of a fashion discounter. A common approach is to estimate demand for sizes directly from the sales data. This approach may yield information for the demand for sizes if aggregated over all branches and products. However, as we will show in a real-world ...

Showrooming is a phenomenon when customer views product at physical store, but buys it online from the same store’s website or competitor’s website. In this paper, we develop economic models of price competition between traditional retailer and an under showrooming behaviour. Our results indicate that hurts benefits in terms sales volumes profits. The combined offline market expands showrooming...