The paper shows that taking inventory control out of the hands of competitive or exclusive retailers and assigning it … because doing so solves incentive distortions that arise when retailers have to allocate inventory across sales periods, and … thus allows for better intertemporal price discrimination. Assigning inventory control to a manufacturer is also shown to …

The paper shows that taking inventory control out of the hands of competitive of exclusive retailers and assigning it … because doing so solves incentive distortions that arise when retailers have to allocate inventory across sales periods, and … thus allows for better intertemporal price discrimination. Assigning inventory control to a manufacturer is also shown to …

, or, (2) vary the price dynamically based on the current inventory status, and disclose leadtime information dynamically … a large inventory. In order to determine which pricing and leadtime disclosure policy attains higher maximum profit, we …, typically, there is a critical inventory level, above which static pricing and no leadtime disclosure yields higher profit, and …