The economics of selection of mail orders

Nissan Levin, Jacob Zahavi

Research output: Contribution to journalArticlepeer-review

Abstract

We discuss the economics of seection of mail orders involving pricing and inventory considerations. We use a probabilistic approach to account for customer choice uncertainty, and offer an approximate approach to account for time uncertainty and model specification errors. The model makes use of the famous "newsboy" problem from inventory theory to solve for the optimal order quantity. The approach is demonstrated on a real application in the collectible industry involving realistic data.

Original languageEnglish
Pages (from-to)53-71
Number of pages19
JournalJournal of Interactive Marketing
Volume15
Issue number3
DOIs
StatePublished - 2001
Externally publishedYes

Fingerprint

Dive into the research topics of 'The economics of selection of mail orders'. Together they form a unique fingerprint.

Cite this