When Customers Anticipate Liquidation Sales: Managing Operations Under Financial Distress
Published Online:13 Sep 2017https://doi.org/10.1287/msom.2017.0634
References
- (2012) Operational investment and capital structure under asset based lending. Johnson School Research Paper Series (23-2012), Cornell University, Ithaca, NY.Crossref, Google Scholar
- (2013) Managing strategic inventories via manufacturer-to-consumer rebates. Management Sci. 59(4):813–818.Link, Google Scholar
- (2008) Optimal pricing of seasonal products in the presence of forward-looking consumers. Manufacturing Service Oper. Management 10(3):339–359.Link, Google Scholar
- (2015) Innovative dynamic pricing: The potential benefits of early-purchase reward programs. Working paper, Washington University in St. Louis, St. Louis.Google Scholar
- (2015) Responsive pricing of fashion products: The effects of demand learning and strategic consumer behavior. Working paper, Washington University in St. Louis, St. Louis.Google Scholar
- (2009) Creditor control and conflict in Chapter 11. J. Legal Anal. 1(2):511–551.Crossref, Google Scholar
- (2010) Independence of capacity ordering and financial subsidies to risky suppliers. Manufacturing Service Oper. Management 12(4):583–607.Link, Google Scholar
- (2004) Pre-IPO operational and financial decisions. Management Sci. 50(7):935–948.Link, Google Scholar
- (2007) Competition and diversification effects in supply chains with supplier default risk. Manufacturing Service Oper. Management 9(2):123–146.Link, Google Scholar
- (2012) Fiduciary duties and equity-debtholder conflicts. Rev. Financial Stud. 25(6):1931–1969.Crossref, Google Scholar
- (2011) 5 ways to cash in on Borders' bankruptcy. Money Talks News (February 22), https://www.moneytalksnews.com/5-ways-to-cash-in-on-borders-bankruptcy/.Google Scholar
- (2011) Stochastic capacity investment and flexible vs. dedicated technology choice in imperfect capital markets. Management Sci. 57(12):2163–2179.Link, Google Scholar
- (2009) Purchasing, pricing, and quick response in the presence of strategic consumers. Management Sci. 55(3):497–511.Link, Google Scholar
- (2007) The impact of manufacturer rebates on supply chain profits. Naval Res. Log. (NRL) 54(6):667–680.Crossref, Google Scholar
- (2009) Are durable goods consumers forward-looking? Evidence from college textbooks. Quart. J. Econom. 124(4):1853–1884.Crossref, Google Scholar
- (1995) Capital structure and product-market competition: Empirical evidence from the supermarket industry. Amer. Econom. Rev. 85(3):415–435.Google Scholar
- (2009) Optimal pricing and rebate strategies in a two-level supply chain. Production Oper. Management 18(4):426–446.Crossref, Google Scholar
- (2013) Resource flexibility and capital structure. Management Sci. 60(3):708–729.Link, Google Scholar
- (2015) Improving store liquidation. Manufacturing Service Oper. Management 18(1):89–103.Link, Google Scholar
- (2008) Financing newsvendor inventory. Oper. Res. Lett. 36(5):569–573.Crossref, Google Scholar
- (2012) Eastman Kodak files for bankruptcy. New York Times (January 19), http://dealbook.nytimes.com/2012/01/19/eastman-kodak-files-for-bankruptcy/.Google Scholar
- (2012) Managing disruption risk: The interplay between operations and insurance. Management Sci. 58(10):1898–1915.Link, Google Scholar
- (2014) Retail inventory: Managing the canary in the coal mine. California Management Rev. 56(2):55–76.Crossref, Google Scholar
- (2015) As certain as debt and taxes: Estimating the tax sensitivity of leverage from state tax changes. J. Financial Econom. 118(3):684–712.Crossref, Google Scholar
- (2013) Intertemporal price discrimination in storable goods markets. Amer. Econom. Rev. 103(7):2722–2751.Crossref, Google Scholar
- (2007) New product blockbusters: The magic and science of prediction markets. California Management Rev. 50(1):144–158.Crossref, Google Scholar
- (2013) Indirect costs of financial distress in durable goods industries: The case of auto manufacturers. Rev. Financial Stud. 26(5):1248–1290.Crossref, Google Scholar
- (2011) Is an automaker’s road to bankruptcy paved with customers' beliefs? Amer. Econom. Rev.: Papers Proc. 101(3):93–97.Crossref, Google Scholar
- (2014) Radio Shack closing 1,100 stores. CNN Money (March 4), http://money.cnn.com/2014/03/04/news/companies/radioshack-store-closings.Google Scholar
- (2001) Value maximization, stakeholder theory, and the corporate objective function. J. Appl. Corporate Finance 14(3):8–21.Crossref, Google Scholar
- (2011) The newsvendor problem and price-only contract when bankruptcy costs exist. Production Oper. Management 20(6):921–936.Crossref, Google Scholar
- (2012) Financing the newsvendor: Supplier vs. bank, and the structure of optimal trade credit contracts. Oper. Res. 60(3):566–580.Link, Google Scholar
- (2010) Buy now and match later: Impact of posterior price matching on profit with strategic consumers. Manufacturing Service Oper. Management 12(1):33–55.Link, Google Scholar
- (2014) Are consumers strategic? Structural estimation from the air-travel industry. Management Sci. 60(9):2114–2137.Link, Google Scholar
- (2013) Control of dividends, capital subscriptions, and physical inventories. Management Sci. 59(5):1107–1124.Link, Google Scholar
- (2008) Strategic capacity rationing to induce early purchases. Management Sci. 54(6):1115–1131.Link, Google Scholar
- (2016) Optimizing product launches in the presence of strategic consumers. Management Sci. 62(6):1778–1799.Link, Google Scholar
- (2015) Get ready: January usually means bankruptcy in retail. Forbes (January 6), https://www.forbes.com/sites/walterloeb/2015/01/06/january-usually-means-bankruptcy-in-retail/#4992f93944ff.Google Scholar
- (2007) Coupons versus rebates. Marketing Sci. 26(1):67–82.Link, Google Scholar
- (2013) Managing inventory for entrepreneurial firms with trade credit and payment defaults. Working paper, IESE Business School, University of Navarra, Madrid.Crossref, Google Scholar
- (2009) A tsunami of evidence the Circuit City’s liquidation sale completely sucks. Consumerist (January 22), https://consumerist.com/2009/01/22/a-tsunami-of-evidence-the-circuit-citys-liquidation-sale-completely-sucks/.Google Scholar
- (2011) Running on empty? Financial leverage and product quality in the supermarket industry. Amer. Econom. J.: Microeconom. 3(1):137–173.Crossref, Google Scholar
- (2009) Circuit City under siege. Technologizer (January 18), http://www.technologizer.com/2009/01/18/circuit-city-under-siege/.Google Scholar
- (2008) Make-or-break holiday season looms large. Washington Post (October 9), http://www.washingtonpost.com/wp-dyn/content/article/2008/10/08/AR2008100804024.html.Google Scholar
- (2007) Intertemporal price discrimination with forward-looking consumers: Application to the us market for console video-games. Quant. Marketing Econom. 5(3):239–292.Crossref, Google Scholar
- (2009) Consumer-Driven Demand and Operations Management Models: A Systematic Study of Information-Technology-Enabled Sales Mechanisms, Vol. 131 (Springer Science and Business Media, Berlin).Google Scholar
- (2013) Are consumers really strategic? If not, can one make them be? Working paper, Emory University, Atlanta.Google Scholar
- (2015) Dynamic pricing in the presence of social learning and strategic consumers. Management Sci. 63(4):919–939.Link, Google Scholar
- (2009) Financial contracting: A survey of empirical research and future directions. Annual Rev. Financial Econom. 1:207–226.Crossref, Google Scholar
- (2003) DVD drive maker hits stop. CNET (August 21), http://news.cnet.com/2100-1041_3-5066675.html.Google Scholar
- (2011) Fire sales in finance and macroeconomics. J. Econom. Perspect. 25(1):29–48.Crossref, Google Scholar
- (2014) AT&T has a secret deal for anyone buying a new iPhone this holiday season. BGR (November 13), https://www.yahoo.com/tech/s/t-secret-deal-anyone-buying-iphone-holiday-season-191518021.html.Google Scholar
- (2006) Treasure Hunt, Inside the Mind of the New Consumer (Penguin Books, New York).Google Scholar
- (1998) The illusion of delayed incentives: Evaluating future effort-money transactions. J. Marketing Res. 35(4):427–437.Crossref, Google Scholar
- (2016) Sears: Latest store closures could signal a eeath spiral. The Street (January 14), http://realmoney.thestreet.com/articles/01/14/2016/sears-latest-store-closures-could-signal-death-spiral.Google Scholar
- (2009) 5 Reasons to avoid liquidation sales. The Street (January 21), http://www.thestreet.com/story/10458692/2/5-reasons-to-avoid-liquidation-sales.html.Google Scholar
- (2010) Optimal pricing with speculators and strategic consumers. Management Sci. 56(1):25–40.Link, Google Scholar
- (2008) Strategic customer behavior, commitment, and supply chain performance. Management Sci. 54(10):1759–1773.Link, Google Scholar
- (2009) On the value of commitment and availability guarantees when selling to strategic consumers. Management Sci. 55(5):713–726.Link, Google Scholar
- (2017) Using contingent markdown with reservation to profit from strategic consumer behavior. Production Oper. Management., ePub ahead of print September 22, http://dx.doi.org/10.1111/poms.12756.Crossref, Google Scholar
- (2005) The Wisdom of Crowds: Why the Many Are Smarter Than the Few (Anchor Books, New York).Google Scholar
- (2009) Long-term contracts under the threat of supplier default. Manufacturing Service Oper. Management 11(1):109–127.Link, Google Scholar
- (2008) Bankruptcy short-circuits Circuit City. CFO (November 10), http://ww2.cfo.com/banking-capital-markets/2008/11/bankruptcy-short-circuits-circuit-city/.Google Scholar
- (2016a) Sears and Kmart are closing 78 more stores. Fortune (April 21), http://fortune.com/2016/04/21/sears-mart-store-closings/.Google Scholar
- (2016b) Sports Authority’s liquidation sale starts on Wednesday. Fortune (May 24), http://fortune.com/2016/05/24/sports-authority-dicks-liquidation/.Google Scholar
- (2014) An investigation of the 40%-off sale in Qinhuangdao real estate market. NBD (March 27), http://www.nbd.com.cn/articles/2014-03-27/820861.html, in Chinese.Google Scholar
- (2016) The end of SunEdison: Developer now looking into liquidating its assets. Greentech Media (May 18), http://www.greentechmedia.com/articles/read/The-End-of-SunEdison-Developer-Now-Looking-Into-Liquidating-Its-Assets.Google Scholar
- (2004) Joint production and financing decisions: Modeling and analysis. Working paper, Northwestern University, Evanston, IL.Google Scholar
- (2017) Trade credit, risk sharing, and inventory financing portfolios. Management Sci., ePub ahead of print August 18, https://doi.org/10.1287/mnsc.2017.2799.Link, Google Scholar
- (2015) The supply chain effects of bankruptcy. Management Sci. 61(10):2320–2338.Link, Google Scholar
- (2009) Optimal markdown pricing: Implications of inventory display formats in the presence of strategic customers. Management Sci. 55(8):1391–1408.Link, Google Scholar
- (2014) Rationing capacity in advance selling to signal quality. Management Sci. 61(3):560–577.Link, Google Scholar

