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Problem definition: Online retailers disclose product availability to influence customer decisions, as a form of pressure selling designed to compel customers to rush into a purchase. Can the revelation of this information drive sales and profitability? We study the effect of disclosing product...
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We estimate the effect of supply chain proximity on product quality. Merging four automotive datasets, we create a supply chain sample that reports the failure rate of 27,807 auto components, the location of 529 upstream component factories, and the location of 275 downstream assembly plants. We...
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Firms in a vertical relationship are likely to affect each other's productivity. But exactly how does productivity spill over across this type of relationship (i.e. through which mechanisms)? And how does the relative importance of these mechanisms depend on the structure of the supply chain? To...
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The use of business insurance has been traditionally studied in a single-firm setting. But in reality preventing operational accidents involves the (unobservable) efforts of multiple firms. We show that, in a multi-firm setting, insurance can be used strategically as a commitment mechanism to...
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Using data from 38,916 businesses in war-torn Colombia and from 5,138 attacks by the two rebel groups, FARC and ELN, we study how firms manage inventory during civil war. We obtain exogenous variation in the conflict intensity via a difference-in-differences model, which hinges on the peace...
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