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We model a single-supplier, 73-store supply chain as a dynamic discrete choice problem. We estimate the model with transaction-level data, spanning 3,251 products and 1,370 days. We find two interrelated phenomena: the bullwhip effect and ration gaming. To establish the bullwhip effect, we show...
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When an unreliable supplier serves multiple retailers, the retailers may compete with each other by inflating their order quantities in order to obtain their desired allocation from the supplier, a behavior known as the rationing game. We introduce capacity information sharing and a capacity...
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Individual differences in decision making may account for much order variation in the supply chain settings and bear significant responsibility for supply chain inefficiencies. In a supply chain, sharing information among decision makers is required to justify the ordering inefficiencies. But...
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