Inventory in vertical relationships with private information and interdependent values
Published
Journal Article
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). © IAET.
Full Text
Duke Authors
Cited Authors
- Anton, J; Biglaiser, G; Lewis, T
Published Date
- March 1, 2011
Published In
Volume / Issue
- 7 / 1
Start / End Page
- 51 - 63
Electronic International Standard Serial Number (EISSN)
- 1742-7363
International Standard Serial Number (ISSN)
- 1742-7355
Digital Object Identifier (DOI)
- 10.1111/j.1742-7363.2010.00153.x
Citation Source
- Scopus