This paper develops a multi-attribute competition model for procurement of short life cycle products. In such an environment, the buyer installs dedicated production capacity at the suppliers before demand is realized. Final production orders are decided after demand materializes. Of course, the buyer is reluctant to bear all the capacity and inventory risk, and thus signs flexible contracts wi...

This paper surveys the recent literature on price discrimination. The focus is on three aspects of pricing decisions: the information about customers available to firms; the instruments firms can use in the design of their tariffs; and the ability of firms to commit to their pricing plans. Developments in marketing technology mean that firms often have access to more information about individua...

Shrimp farming in Iran is one of the fast growing segments of the economy. In 1994, around 1% of Iranian shrimp production was farmed and by 2004 the share of shrimp farming increased to 60%. In spite of the fact that shrimp culture had relatively rapid growth in last decade, due to increase in production cost and decrease in international price, the profit of shrimp production has decreased in...

Mathematical finance (or financial engineering, as it is often known) is a young subject for mathematics, but is highly popular with students. No doubt the allure of being connected to vast sums of money is a part of the attraction. Yet it is a difficult subject, requiring a broad array of knowledge of subjects that are traditionally considered hard to learn. Forty years ago, options and what a...

in this article, decisions about price and stock allocation for a seller with multiple customer classes are analyzed. with each customer arrival, the seller needs to decide about accepting or rejecting the customer’s demand by considering the stock on hand. in the case of acceptance, one needs to decide about the selling price. after any change in the inventory level, decision about continuing ...

We consider a supply chain with an upstream supplier who invests in innovation and a downstream manufacturer who sells to consumers. We study the impact of supply chain contracts with upstream innovation, focusing on three different contract scenarios: (i) a wholesale price contract, (ii) a quality-dependent wholesale price contract, and (iii) a revenue-sharing contract. We confirm that the rev...

I study credence goods markets when there are both selfish and conscientious experts. The selfish expert is a profit maximizer. The conscientious expert wants to maximize profit and repair the consumer’s problem. There are two classes of equilibria: uniform-price equilibria and nonuniform-price equilibria. A consumer cannot infer the expert’s type from his price list in a uniform-price equilibr...

This research proposes a Preemptive Possibilistic Linear Programming (PPLP) approach for solving multiobjective Aggregate Production Planning (APP) problem with interval demand and imprecise unit price and related operating costs. The proposed approach attempts to maximize profit and minimize changes of workforce. It transforms the total profit objective that has imprecise information to three ...

In a two-country Hotelling type duopoly model of price competition, we show that parallel import (PI) policy can act as an instrument of strategic trade policy. The home firm’s profit is higher when it cannot price discriminate internationally if and only if the foreign market is sufficiently bigger than the domestic one. The key mechanism in the model is that the home firm’s incentive to keep ...

This paper studies the impact of a manufacturer-hired sales agent on a supply chain comprising a manufacturer and a retailer. The sales agent is working mainly at the retailer’s location in order to boost the demand. We focus on a wholesale price contract, under which the retailer decides how much to order from the manufacturer. The information structure within the supply chain and the efficien...