Related papers: Shelf space strategy in long-tail markets
The burgeoning integration of distributed energy resources (DER) poses new challenges for the economic and safe operation of the electricity system. The current distribution-side policy is largely based on mandatory regulations and…
We develop a location analysis spatial model of firms' competition in multi-characteristics space, where consumers' opinions about the firms' products are distributed on multilayered networks. Firms do not compete on price but only on…
We study the emergence of a power law distribution in the systems which can be characterized by a hierarchically organized supplying network. It is shown that conservation laws on the branches of the network can, at some approximation,…
In recent years, with rising consumer demand, fresh products have gained increasing attention, leading to rapid growth in the fresh food market. However, due to their perishable nature and sensitivity to storage conditions, fresh products…
We consider hundreds of thousands of individual economic transactions to ask: how predictable are consumers in their merchant visitation patterns? Our results suggest that, in the long-run, much of our seemingly elective activity is…
Grocery retailers frequently apply price discounts to stimulate demand for expiring perishables. However, integrating these discounted sales into future demand forecasts presents a significant challenge. This study investigates the…
We develop a theory for the market impact of large trading orders, which we call metaorders because they are typically split into small pieces and executed incrementally. Market impact is empirically observed to be a concave function of…
This paper models firm-to-firm trade in a production network as a set of double auctions. Firms have multilateral market power, namely, can affect prices in both input and output markets. The size and division of surplus are endogenous and…
The success of "infinite-inventory" retailers such as Amazon.com and Netflix has been largely attributed to a "long tail" phenomenon. Although the majority of their inventory is not in high demand, these niche products, unavailable at…
Each market has its singular characteristic. Its inner structure is directly responsible for the observed distributions of returns though this fact is widely overlooked. Big orders lead to doubling the tails. The behavior of a market maker…
While consolidation strategies form the backbone of many supply chain optimisation problems, exploitation of multi-tier material relationships through consolidation remains an understudied area, despite being a prominent feature of…
This paper investigates a multi-product stochastic inventory problem in which a cash-constrained online retailer can adopt order-based loan provided by some Chinese e-commerce platforms to speed up its cash recovery for deferred revenue. We…
The rapid expansion of digital commerce platforms has amplified the strategic importance of coordinated pricing and inventory management decisions among competing retailers. Motivated by practices on leading e-commerce platforms, we analyze…
In this paper, we extend the model of Gao and Su (2016) and consider an omnichannel strategy in which inventory can be replenished when a retailer sells only in physical stores. With "buy-online-and-pick-up-in-store" (BOPS) having been…
The online retailers network models are considered. In some nodes of the network consumers are located. Each consumer wishes to purchase a particular product at minimal cost due to the price of goods and transport corruption costs. Also, in…
The study of heavy-tailed distributions in economic and financial systems has been widely addressed since financial time series has become a research subject.After the eighties, several "highly improbable" market drops were observed (e.g.…
E-grocery retailing enables ordering products online to be delivered at a future time slot chosen by the customer. This emerging field of business provides retailers with large and comprehensive new data sets, yet creates several challenges…
Many real-world prediction tasks have outcome variables that have characteristic heavy-tail distributions. Examples include copies of books sold, auction prices of art pieces, demand for commodities in warehouses, etc. By learning…
Sequential user behavior modeling plays a crucial role in online user-oriented services, such as product purchasing, news feed consumption, and online advertising. The performance of sequential modeling heavily depends on the scale and…
This paper investigates the impact of decentralizing inventory decision-making in multi-establishment firms using data from a large retail chain. Analyzing two years of daily data, we find significant heterogeneity among the inventory…