The second part of the thesis focuses on a different stochastic problem of finding the optimal hedging points in a manufacturing flow control system. Our simulation-based method allows solving large scale systems that are considered very difficult to solve by current standards in the literature.

We study dynamic price competition in an oligopolistic market with a mix of substitutable and complementary perishable assets. Each firm has a fixed initial stock of items and competes in setting prices to sell them over a finite sales horizon. Customers sequentially arrive at the market, make a...

Existing literature on dealer liquidity provision and inventory management has focused on dealer inventory costs. I uncover a new inventory benefit channel: dealers strategically build inventory in order to compete for market share. I assess the relative impact of the inventory benefit and costs...

Established findings suggest that strategic inventory may alleviate double marginalization and improve the efficiency of a decentralized distribution channel. In this paper, we examine the effect of strategic inventory in the presence of chain-to-chain competition. We show that as the...