Optimal Capacity and Price Designs Under Ex Ante and Ex Post Theft
References
- (2000) Intra-firm retail contracting: Survey evidence from the UK. Cambridge Working Papers in Economics 0022, Faculty of Economics, University of Cambridge, Cambridge, UK.Google Scholar
- (2023) The cost of retail theft: Impacts on pricing and profits. Accessed September 18, 2025, https://www.briefcam.com/resources/blog/the-cost-of-retail-theft-impacts-on-pricing-and-profits/.Google Scholar
- (2016) The spillover effects of monitoring: A field experiment. Management Sci. 62(1):37–45.Link, Google Scholar
- (2020) The scope of sequential screening with ex post participation constraints. J. Econom. Theory 188:105055.Crossref, Google Scholar
- (2018) Dynamic pricing under debt: Spiraling distortions and efficiency losses. Management Sci. 64(10):4572–4589.Link, Google Scholar
- (1995) Double-sided moral hazard and the nature of share contracts. Rand J. Econom. 26(4):761–781.Crossref, Google Scholar
- (2004) Inventory management with asset-based financing. Management Sci. 50(9):1274–1292.Link, Google Scholar
- (2012) Can wages buy honesty? The relationship between relative wages and employee theft. J. Accounting Res. 50(4):967–1000.Crossref, Google Scholar
- (2014) Resource flexibility and capital structure. Management Sci. 60(3):708–729.Link, Google Scholar
- (2013) Salesforce contracting under demand censorship. Manufacturing Service Oper. Management 15(2):320–334.Link, Google Scholar
- (2024) Walmart employee in Westmoreland accused of stealing over $40k by faking returns. Accessed May 6, 2025, https://www.wtae.com/article/walmart-employee-faking-returns/61957065.Google Scholar
- (2022) Loss-framed incentives and employee (mis-)behavior. Management Sci. 68(10):7518–7537.Link, Google Scholar
- (2008) Financing newsvendor inventory. Oper. Res. Lett. 36(5):569–573.Crossref, Google Scholar
- (2013) Salesforce compensation with inventory considerations. Management Sci. 59(11):2490–2501.Link, Google Scholar
- (2016) Technical note—Impact of inventory on quota-bonus contracts with rent sharing. Oper. Res. 64(1):94–98.Link, Google Scholar
- (2010) Optimal financial contracts with hidden effort, unobservable profit and endogenous costs of effort. Quart. Rev. Econom. Finance 50(1):75–89.Crossref, Google Scholar
- (2018) Financing capacity investment under demand uncertainty: An optimal contracting approach. Manufacturing Service Oper. Management 20(1):85–96.Link, Google Scholar
- (2019) Financing capacity with stealing and shirking. Management Sci. 65(11):5128–5141.Link, Google Scholar
- (2023) Metals industry grapples with fraud wave. Financial Times (September 22), https://www.ft.com/content/00920f73-6650-42bd-b64d-f54b8c67a9b3.Google Scholar
- (2022) Rising thefts at Walmart could lead to price jumps, store closures, CEO says. Accessed September 18, 2025, https://www.cnbc.com/2022/12/06/walmart-ceo-says-shoplifting-could-lead-to-price-jumps-store-closures.html.Google Scholar
- (2009) Shoplifters? Studies say keep an eye on workers. New York Times (December 29), https://www.nytimes.com/2009/12/30/business/30theft.html.Google Scholar
- (2021) Procurement with cost and noncost attributes: Cost-sharing mechanisms. Oper. Res. 69(5):1349–1367.Link, Google Scholar
- (2022) Contracting, pricing, and data collection under the AI flywheel effect. Management Sci. 68(12):8791–8808.Link, Google Scholar
- (2020) Information design and sequential screening with ex post participation constraint. Theoret. Econom. 15(1):319–359.Crossref, Google Scholar
- (1990) Limited liability and incentive contracting with ex ante action choices. J. Econom. Theory 52(1):45–67.Crossref, Google Scholar
- (2025) Ex-general manager of West Long Branch motorcycle dealership charged with theft. Accessed May 6, 2025, https://www.yahoo.com/news/ex-general-manager-west-long-210341337.html.Google Scholar
- (2013) Control of dividends, capital subscriptions, and physical inventories. Management Sci. 59(5):1107–1124.Link, Google Scholar
- (2017) The lesson learned from an employee who stole $1.2 million worth of fajitas from his employer. Accessed May 7, 2025, https://www.inc.com/gene-marks/why-did-this-employee-steal-1251578-worth-of-fajitas-from-his-employer.html.Google Scholar
- (2012) Franchise fees and royalties: Theory and empirical results. Rev. Indust. Organ. 40(3):167–189.Crossref, Google Scholar
- (2024) The impact of retail theft on small businesses and states. Forbes (June 10), https://www.forbes.com/advisor/business-insurance/impact-retail-theft-on-small-businesses/.Google Scholar
- National Retail Federation (2021) National retail security survey 2021. Technical report, National Retail Federation, Washington, DC.Google Scholar
- (2024) Target slows store theft, but at a cost to shopping experience. Minnesota Star Tribune (September 5), https://www.startribune.com/target-retail-loss-shrink-theft-shoplifting-asset-protection-cost-shopper/601138550.Google Scholar
- (2011) Monitoring policy and organizational forms in franchised chains. Internat. J. Econom. Bus. 18(3):399–417.Crossref, Google Scholar
- (1999) Pricing and the newsvendor problem: A review with extensions. Oper. Res. 47(2):183–194.Link, Google Scholar
- (2015) Cleaning house: The impact of information technology monitoring on employee theft and productivity. Management Sci. 61(10):2299–2319.Link, Google Scholar
- (2017) This crime in the workplace is costing US businesses $50 billion a year. Accessed September 18, 2025, https://www.cnbc.com/2017/09/12/workplace-crime-costs-us-businesses-50-billion-a-year.html.Google Scholar
- (2022) Retail theft costly to both retailers and consumers. Accessed September 18, 2025, https://www.wbrc.com/2022/12/09/retail-theft-costly-both-retailers-consumers/.Google Scholar
- (2020) Mean-variance analysis of the newsvendor problem with price-dependent, isoelastic demand. Eur. J. Oper. Res. 283(3):942–953.Crossref, Google Scholar
- (1991) Incentives in principal-agent relationships. J. Econom. Perspect. 5(2):45–66.Crossref, Google Scholar
- Solink (2024) Putting an end to point of sale employee theft, how to do it. Accessed September 18, 2025, https://solink.com/resources/point-of-sale-employee-theft/.Google Scholar
- (2010) Ex-Dunkin’ Donuts franchisee CFO charged with theft. Long Island Business News (March 8), https://libn.com/2010/03/08/ex-dunkin’-donuts-franchisee-cfo-charged-with-theft/.Google Scholar
- Song H, Lai G, Xiao W (2024) Optimal salesforce compensation with general demand and operational considerations. Manufacturing Service Oper. Management 26(6):2274–2283.Google Scholar
- (1974) Incentives and risk sharing in sharecropping. Rev. Econom. Stud. 41(2):219–255.Crossref, Google Scholar
- (2025) Shell oil heist: Man admits to helping firm acquire misappropriated fuel worth nearly $18.4 million. Accessed July 21, 2025, https://www.channelnewsasia.com/singapore/jail-man-who-blocked-investigations-shell-bukom-fuel-heist-lying-police-4908051.Google Scholar
- The Times of India (2022) Retail outlet store manager booked for theft of funds. Times of India (February 1), https://timesofindia.indiatimes.com/city/gurgaon/retail-outlet-store-manager-booked-for-theft-of-funds/articleshow/89258106.cms.Google Scholar
- (2010) The Theory of Corporate Finance (Princeton University Press, Princeton, NJ).Google Scholar
- (1979) Optimal contracts and competitive markets with costly state verification. J. Econom. Theory 21(2):265–293.Crossref, Google Scholar
- (2020) Ex-Hermès staff appear in court over fake designer handbags. The Guardian (June 24), https://www.theguardian.com/world/2020/jun/24/ex-hermes-staff-appear-in-court-over-fake-designer-handbags/.Google Scholar
- (2024) How an employee stole $26,506 using a POS register system. Accessed September 18, 2025, https://www.gma-cpa.com/blog/diligent-financial-monitoring-helps-retailer-catch-employee-theft.Google Scholar
- (2020) Optimal salesforce compensation with supply-demand mismatch costs. Production Oper. Management 29(1):62–71.Crossref, Google Scholar
- (2010) The effect of demand uncertainty in a price-setting newsvendor model. Eur. J. Oper. Res. 207(2):946–957.Crossref, Google Scholar
- (2021) Financing an agricultural supply chain with a capital-constrained smallholder farmer in developing economies. Production Oper. Management 30(7):2102–2121.Crossref, Google Scholar

