The role of inventory in delivery-time competition
Management Science
Pricing and the News Vendor Problem: a Review with Extensions
Operations Research
Channel Dynamics Under Price and Service Competition
Manufacturing & Service Operations Management
Impact of Uncertainty and Risk Aversion on Price and Order Quantity in the Newsvendor Problem
Manufacturing & Service Operations Management
Customer Service Competition in Capacitated Systems
Manufacturing & Service Operations Management
Customer Loyalty and Supplier Quality Competition
Management Science
Note: The Newsvendor Model with Endogenous Demand
Management Science
Inventory Competition Under Dynamic Consumer Choice
Operations Research
Centralized and Competitive Inventory Models with Demand Substitution
Operations Research
A General Equilibrium Model for Industries with Price and Service Competition
Operations Research
Measuring and Mitigating the Costs of Stockouts
Management Science
Measuring and Mitigating the Costs of Stockouts
Management Science
Measuring and Mitigating the Costs of Stockouts
Management Science
The Impact of Quick Response in Inventory-Based Competition
Manufacturing & Service Operations Management
Strategic Capacity Rationing when Customers Learn
Manufacturing & Service Operations Management
An analysis of consumer training for feature rich products
Decision Support Systems
Dynamic Pricing with Loss-Averse Consumers and Peak-End Anchoring
Operations Research
Double moral hazard in a supply chain with consumer learning
Decision Support Systems
Dynamic Capacity Allocation to Customers Who Remember Past Service
Management Science
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We develop a model of consumer learning and choice behavior in response to uncertain service in the marketplace. Learning could be asymmetric, that is, consumers may associate different weights with positive and negative experiences. Under this consumer model, we characterize the steady-state distribution of demand for retailers given that each retailer holds a constant in-stock service level. We then consider a noncooperative game in steady state between two retailers competing on the basis of their service levels. The demand distributions of retailers in this game are modeled using a multiplicative aggregate market-share model in which the mean demands are obtained from the steady-state results for individual purchases, but the model is simplified in other respects for tractability. Our model yields a unique pure strategy Nash equilibrium. We show that asymmetry in consumer learning has a significant impact on the optimal service levels, market shares, and profits of the retailers. When retailers have different costs, it also determines the extent of competitive advantage enjoyed by the lower-cost retailer.