Inventory in Vertical Relationships with Private Information and Interdependent Values

We study the use of inventory when a distributor is better informed about demand than a manufacturer. We find that when distributor and manufacturer values are interdependent it is optimal to endow the distributor with some inventory before it obtains its private information. We characterize the final allocation of the good and show that the distributor may have too few (many) units relative to the efficient allocation when demand is high (low).

MoreLess

Year of publication:	2010
Authors:	Anton, James J. ; Biglaiser, Gary ; Lewis, Tracy
Institutions:	Duke University, Department of Economics

freely available

Full text |

More access options

Check Google Scholar

In German libraries (KVK)

I need help

More details

Series:	Working Papers.
Type of publication:	Book / Working Paper
Notes:	Number 10-35 2 pages long
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008549064