Considering the heterogeneity of customer purchase behavior in loyalty programs partnerships, in the asymmetric situation of enterprise A who joins the loyalty programs partnerships while enterprise B who implements customer loyalty programs alone, discussing the win-win mechanism of loyalty programs partnerships through the two stage game model, and providing equilibrium price and asymmetric e...

We analyze how sharing rules affect Nash equilibria in Bertrand games, where the sharing of profits at ties is a decisive assumption. Necessary conditions for either positive or zero equilibrium profits are derived. Zero profit equilibria are shown to exist under weak conditions if the sharing rule is “sign-preserving”. For Bertrand markets we define the class of “expectation sharing rules”, wh...

In an attempt to protect their intellectual property and compete effectively in an increasingly dynamic marketplace, software producers have employed a number of preventive and deterrent measures to counter software piracy. Conventional wisdom suggests that reducing piracy will force consumers to legitimately acquire software, thus increasing firm profits. In this paper, we develop an analytica...

This paper studies the relation between discrete-time and continuoustime principal-agent models. We derive the continuous-time model as a limit of discretetime models with ever shorter periods and show that optimal incentive schemes in the discrete-time models approximate the optimal incentive scheme in the continuous model, which is linear in accounts. Under the additional assumption that the ...

We study compatibility decisions of competing platforms when they generate profits through both hardware sales and royalties from content sales. We show that when the two platforms provide different values to their users, their major sources of profits may differ—one platform may generate most of its profits from hardware sales, while the other’s profits will result mostly from royalties of con...

About 25% of the world's fisheries are depleted such that their current biomass is lower than the level that would maximize the sustained yield (MSY). By using methods not previously applied in the fisheries conservation context, we show in four disparate fisheries (including the long-lived and slow-growing orange roughy) that the dynamic maximum economic yield (MEY), the biomass that produces ...