Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
1143116 | Operations Research Letters | 2009 | 4 Pages |
Abstract
When customers for a product from NN substitutable alternatives find their first choice sold out, they might “spill” to their secondmost preferred product. The existing literature typically assumes an exogenous spill rate. We develop a surprisingly simple model that links the spill rate to economic factors associated with direct demand systems.
Keywords
Related Topics
Physical Sciences and Engineering
Mathematics
Discrete Mathematics and Combinatorics
Authors
Derek Atkins, Xuan Zhao,