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|Title:||Overselling in a competitive environment: Boon or bane?||Authors:||Lim, W.S.||Keywords:||Capacity constraints
|Issue Date:||2009||Citation:||Lim, W.S. (2009). Overselling in a competitive environment: Boon or bane?. Marketing Science 28 (6) : 1129-1143. ScholarBank@NUS Repository. https://doi.org/10.1287/mksc.1090.0519||Abstract:||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. © 2009 INFORMS.||Source Title:||Marketing Science||URI:||http://scholarbank.nus.edu.sg/handle/10635/43890||ISSN:||07322399||DOI:||10.1287/mksc.1090.0519|
|Appears in Collections:||Staff Publications|
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