Optimal service speeds in a competitive environment
Management Science
Price Versus Production Postponement: Capacity and Competition
Management Science
Combined Pricing and Inventory Control Under Uncertainty
Operations Research
Research Note: Overselling with Opportunistic Cancellations
Marketing Science
Commissioned Paper: An Overview of Pricing Models for Revenue Management
Manufacturing & Service Operations Management
Contingent Pricing to Reduce Price Risks
Marketing Science
Service Escape: Profiting from Customer Cancellations
Marketing Science
Revenue Management of Callable Products
Management Science
Newsvendors Under Simultaneous Price and Inventory Competition
Manufacturing & Service Operations Management
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In this paper, we study the practice of overselling in a competitive environment where late-arriving consumers value the good higher than early-arriving ones but the former's arrival is uncertain. We show that overselling is a dominant strategy for the firms. However, it can lead to a prisoners' dilemma situation in which all firms are worse off overselling. We further show that only when demand from the late consumers far exceeds the supply and there is a sufficiently high profit margin from reselling does overselling result in a Pareto-dominant outcome for the firms.