Seminar Series

Events

W. Klein Seminar Series: Johnny Rungtusanatham (Ohio State)

Title:

Does Excellent Supplier Performance Guarantee Relationship Continuity? The Role of a Recent Unintentional But Serious Supplier Error

 

Abstract: 

Expecting critical-component suppliers to operate error-free on a continual basis is not realistic.  Adopting Assimilation-Contrast Theory, we investigate the role of a recent unintentional but serious supplier error on buyer-supplier relationship continuity and on the positive association between historical supplier performance and relationship continuity using a scenario-based role-playing experiment.

 

February 22

11:30 AM – 1:00 PM

Stokes Hall, N203

W. Klein Seminar Series: Ming Hu (University of Toronto)

Title:

Blockbuster or Niche? Competitive Strategy under Network Effects

http://ssrn.com/abstract=3049370

Abstract:

We provide a theory that unifies the long tail and blockbuster phenomena. Specifically, we analyze a three-stage game where, first, a large number of potential firms make entry decisions, then those who stay in the market decide on the investment in its product, and lastly customers with heterogeneous preferences arrive sequentially to make purchase decisions based on product quality and historic sales under the network effect. We show analytically that a growing network effect always contributes to more sales concentration on a small number of products, supporting the blockbuster phenomenon. However, product variety and investments in quality, as an outcome of firms' ex ante competitive decisions, may increase or decrease, as the network effect grows. When a parameter that determines the strength of the network effect is below a particular threshold, an increasing network effect would shift more sales towards the products with higher quality, preventing more products from entering the market ex ante and inducing firms to adopt the blockbuster equilibrium strategy by making high-budget products. When the parameter is above the threshold, the network effect will easily cause the market to be concentrated to a few products; even some low-quality products may have a chance to become a "hit." Interestingly, in this case, when the network effect is growing, the ex-ante equilibrium product variety will be broader and firms adopt the niche equilibrium strategy by making low-budget products, a finding which supports the long tail theory. We test our theory with the movie box office data and find strong supporting evidence.

March 22

11:30 AM – 1:00 PM

Lyons Hall, 315

W. Klein Seminar Series: Nicholas Petruzzi (Penn State)

Title: Nobody pays retail anymore: Optimal pricing in distribution channels with bargain-hunting consumers

 

Abstract: We study optimal retail pricing for a stylized distribution channel in which a single product is sold to a market characterized by bargain-hunting consumers, where bargain hunting is a notion that refers to the propensity of some consumers to extract psychological benefit from the purchase of a given item that is posted at a discounted price. In particular, we derive a price and discount dependent retail demand function from first principles by developing a consumer utility function that incorporates both economic and psychological utility effects associated with a posted selling price that is explicitly discounted from a posted list price. Within that context, we analytically explore the retailer’s trade-off between posting a selling price without an accompanied list price and posting a selling price that is coupled with, and explicitly discounted from, a higher list price, and we determine the retailer’s optimal one-point versus two-point pricing strategy accordingly. We then analyze the effects of wholesale pricing, manufacturer suggested retail pricing, and demand uncertainty on the optimal strategy and corresponding split of channel profits.

March 29

11:30 AM – 1:00 PM

Fulton Hall, 310

W. Klein Seminar Series

Juanjuan Zhang (MIT)

April 05

11:30 AM – 1:00 PM

Stokes Hall, N203

W. Klein Seminar Series

Sridhar Tayur (Carnegie Mellon University) 

April 19

11:30 AM – 1:00 PM

Stokes Hall, N203

W. Klein Seminar Series

Ioannis Bellos (George Mason University)

April 26

11:30 AM – 1:00 PM

Lyons Hall, 315