
Tatyana ChernonogBar Ilan University | BIU · Department of Management
Tatyana Chernonog
Ph.D.
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39
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Introduction
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October 2004 - present
Publications
Publications (39)
We study the design of a novel, flexible revenue-sharing contract between a platform and an app developer (or other digital content provider) when the parties hold heterogeneous beliefs with regard to the future income. The current contracts adopted by platforms in reality invoke a policy of two or three commission levels based on historical revenu...
Problem definition: With the rapid growth of e-commerce, platforms are able to gather large quantities of data, which can result in high-precision predictions regarding consumer purchasing patterns and future demand. A fundamental question is whether a platform has the incentives and ability to share such nonverifiable information with its sellers....
This work deals with issues characterizing the mobile app industry. In particular, we focus on an app developer who competes against either a rival app developer or a private label of the distribution platform, and who can bypass the platform’s distribution and billing systems. The innovation of this work lies in considering the co-creation of app...
Mobile app development is a fast-growing industry, with Google Play and App Store being the two largest platforms, which provide app developers with a global audience. While each platform has its own captive app users, developers have the freedom to distribute their app via either a single platform or both. In the latter case, developers need to cr...
Distribution platforms use a consignment contract with revenue sharing when interacting with their app developers. In such a contract, the developer continues to own the app and typically bears sole responsibility for determining its selling price, where for every app sold, the platform charges the developer an agreed-upon percentage of the selling...
This work develops a general model of a two-echelon supply chain in which a dominant retailer interacts with a manufacturer via a consignment contract with revenue sharing. The manufacturer’s cost function is known only to him, whereas the retailer has only an estimation of this function, which is based on common knowledge. We formulate the interac...
Revenue sharing contracts (RSCs) have gained considerable popularity over the past two decades—particularly among prominent platform distributors such as the Apple App Store, Google Play, and Amazon— and have therefore attracted a great deal of research attention in the domain of supply-chain management. This study is the first to review the litera...
We investigate consignment contracts with revenue-sharing for selling virtual products subject to information asymmetry. In practice, distribution platforms commonly use unified contracts with identical revenue-sharing terms across the developers whose products they offer. We analyze the case of a developer who is better informed than his distribut...
This study is motivated by industries in which products can be partially prepared and stored before demand occurs, while demand is stock-dependent. We study a multi-server system in which the servers utilise their idle time to produce and store ‘preliminary services’ (PSs) in order to reduce customers’ sojourn time and, as a result, stimulating dem...
This paper investigates contract design by a firm in a supply chain where the quality of the product delivered to consumers is co-created by the quality decisions of the contract designer (platform firm) and the agent (the service provider) whose inputs need to be coordinated. Revenue is a function of the price charged to consumers, the product qua...
Many service systems in the fast food industry consist of two types of customers: fastidious and strategic. A fastidious customer will always join the queue and wait for a fresh product, while a strategic customer, depending on queue length and on stock availability, may either join the queue for fresh products, purchase an inventoried pre-prepared...
We address competition between several firms that cause pollution when producing fully substitutable products. These firms comprise the industry and each individual firm charges for its products the market price determined by the difference between cumulative market supply and demand, i.e., by the industry's stock. We find that although the greater...
Virtual products, such as mobile apps, 3D print files, e-music, etc., are produced with ample capacity and supplied with zero lead-time. We consider a two-echelon supply chain of a virtual product whose parties, a manufacturer and a retailer, operate under a revenue-sharing contract and face information asymmetry about demand. Demand is sensitive t...
We investigate a two-echelon supply chain comprising a manufacturer and a retailer, who are engaged in a Stackelberg game in which they set the terms of a wholesale price contract for a perishable product. Product demand depends on the selling price, the investment in advertising, and the time a unit spends on the shelf before being sold. The inves...
We consider a two-server service system in which idle servers produce and store preliminary services for reducing the sojourn time of incoming customers and increasing customers arrival rate. We model the system as a Markovian process and provide a method, based on matrix geometric (MG) analysis, to obtain closed-form solutions to the steady state...
This paper is the first to review the issue of revenue-sharing contract (RSC) in a supply chain management. This contract has gained excessive popularity over the last two decades, since it coordinates the supply chain. Two formats of this contract are primarily used in practice and are thoroughly investigated in the literature: (i) a wholesale-pri...
Postponement strategies are becoming increasingly important in light of a global trend in which products’ life-cycles are decreasing, such that even products that are not traditionally considered seasonal become “obsolete” within a short period of time (e.g., electronic devices, new cars). Our work addresses postponed-pricing and ordering decisions...
The typical fast food service system can be conceptualized as a queueing system of customers combined with an inventory of perishable products. A potentially effective means of improving the efficiency of such systems is to simultaneously apply time management policies and inventory management techniques. We propose such an approach, based on a com...
We consider the effect of competition between a firm and its potential suppliers on their decisions, including the firm's decision regarding which supplier to choose. The supply-chain parties interact via a wholesale-price contract with risk sharing via compensation payments paid by the supplier to the firm for early/late supplies. Both the demand...
We consider a multi-item newsvendor problem with side constraints and common continuous demand distributions that are bounded implying that the items’ profit functions are nondifferentiable. In particular we focus on the cases of uniform and triangular distributions. These distributions naturally describe demand that is guaranteed to exceed a certa...
We propose a novel approach to improve efficiency in service systems. The idea is to utilize the server's idle time to perform and store “preliminary services” for customers who will arrive in the future. Such a model is relevant to settings in which service consists of multiple consecutive tasks, some of which are generic and needed by all custome...
The paper provides a thorough investigation of a first-time interaction between a retailer and a manufacturer who are unreliable in a cost function of the manufacturer. We consider a two-echelon supply chain of a single customized product, where parties interact via a revenue-sharing contract. The general model is formulated as a Retailer-Stackelbe...
We investigate a two-echelon supply chain comprising a manufacturer-leader and a retailer, who are negotiating a wholesale price contract for a perishable product. Product demand depends on retail price, product age, and investment in advertising. The retailer, who is closer to the customers, knows the exact demand function, whereas the manufacture...
Virtual products are characterized by ample production capacity, zero lead time, and no holding costs. We consider a two-echelon supply chain of a virtual product, consisting of a single manufacturer and a single retailer who face random demand. Demand depends on both price and quality of the product, and its stochastic nature exposes the supply-ch...
We study a single-server queue in which the service consists of two independent stages. The first stage is generic and can be performed even in the absence of customers, whereas the second requires the customer to be present. When the system is empty of customers, the server produces an inventory of first-stage (‘preliminary’) services (denoted PSs...
This study considers dynamic decisions of a retailer who seeks to determine the selling price and promotion expenditures associated with a perishable product, as well as to set the order quantity and the inter-replenishment time (cycle length). We propose an EOQ model in which the retailer faces a general demand function that is separable into mult...
This paper evaluates mergers and acquisitions (M&A) in a supply chain involving risk-averse parties. In contrast to prior literature, the analysis presented herein suggests that, because of risk considerations, different types of M&A can yield different outcomes. Specifically, we distinguish among three types of M&A arrangements—merger, forward acq...
“Learning by doing”, in which unit production costs decrease with cumulative production experience, is extensively observed in economies of scale. It has been shown that, in the case of mature technologies, learning curves exhibit a linear behavior in cumulative production. In this paper we consider two competing firms that produce fully substituta...
A process can be in either a stable or an unstable state interchangeably. The true state is unobservable and can only be inferred from observations. Three actions are available: continue with the process (CON), repair the process for a certain fee – bring the process to the stable state (REP), and obtain the state of the process for a cost (INS). T...
The paper provides a thorough investigation of the revenue sharing contract format typically used in the mobile applications (Apps) industry. The platform provider sets the level of revenue sharing, and the App developer determines the investment in quality and the selling price of the App. The demand for an App, which depends on both price and qua...
This work develops a stochastic model of a two-echelon supply chain of virtual products in which the decision makers—a manufacturer and a retailer—may be risk-sensitive. Virtual products allow the retailer to avoid holding costs and ensure timely fulfillment of demand with no risk of shortage. We expand on the work of Chernonog and Avinadav (2014),...
Consider n mobile application (app) developers selling their software through a common platform provider (retailer), who offers a consignment contract with revenue sharing. Each app developer simultaneously determines the selling price of his app and the extent to which he invests in its quality. The demand for the app, which depends on both price...
Despite the widely reported speculation in the 1990s that the era of small medical practices would end within a short period of time, the majority of physicians today still work as solo practitioners or in groups of five or fewer. Personal goals and values in addition to a lack of room for negotiation and difficulties in “being heard” in large orga...
The paper studies decisions regarding labor supply, consumption and cash savings that maximize the total utility of consumption and non-labor time of an individual. A new dynamic model that studies the relationship between time and wealth, with the goal of determining the optimal fractions of time an individual should allocate to three different ty...
We analyze pricing and protection (digital rights management) strategies in a two-echelon supply chain that consists of a manufacturer and a retailer of digital products. The demand for the legal (non-pirated) product, which depends on both price and monetary investment in protection, is assumed to be uncertain. Three different supply chain models...
This work deals with pricing of “virtual” products, i.e., products that a retailer can supply after demand has been realized. Such products allow the retailer to avoid holding costs and ensure timely fulfillment of demand with no risk of shortage. Demand is commonly price-dependent and uncertain, and we seek to maximize each of three criteria: expe...
We consider a supply chain consisting of a supplier and a risk-averse retailer operating under endogenous demand in retail pricing. The demand potential is uncertain and is revealed at the beginning of the selling season when it is too late to order products. The product price, on the other hand, is not determined in advance and can be postponed un...