A residential construction firm's product mix and land investment decisions are highly complex due to the need for long-term planning. We study these decisions using a 3-stage capacity-constrained stochastic optimization model with a heterogeneous consumer base under willingness-to-pay distribution uncertainty. Among others, we find that the land investment increases with uncertainty. We also discuss the impact of competition and housing affordability regulations and find non-intuitive results.

We empirically analyze price bargaining for houses between the company and individual buyers. In each bargain, the seller and buyer take turns to make concessions until one of them terminates the bargain by accepting the other’s offer or by exiting it. We relate concessions to compromises via reservation prices and then measure bargaining powers through compromises. We identify house and buyer types and obtain type-dependent estimates of reservation prices and bargaining powers.

Visitor experience in museums is complex, where the utility procured by an artwork depends on multiple artistic, layout-related, and environmental factors. In this paper, we build a framework that analyses sequential choices made by the incumbent when the options are made available in a physical space. By applying it to the context of museums, we are able to study the effect of the curatorial decisions on visitor engagement and build counterfactuals for identifying better layout configurations.