| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 10523910 | Operations Research Letters | 2016 | 6 Pages |
Abstract
We study the advance selling problem within the framework of rational expectation. We assume that there are two types of customers in the market and the high type customers' valuation is deterministic, while the low type customers' valuation depends on the preorder outcome. We show the existence and uniqueness of the rational expectation equilibrium. We find that the impact of the preorder-dependent customer valuation is positive and that the preorder strategy may dominate the no-preorder strategy.
Related Topics
Physical Sciences and Engineering
Mathematics
Discrete Mathematics and Combinatorics
Authors
Zhongjun Tian, Yefeng Wang,