Ensuring Sales: A Theory of Inter-Firm Credit
نویسندگان
چکیده
منابع مشابه
Ensuring Sales: A Theory of Inter-Firm Credit
Delayed payment (trade credit) and prepayment are widely observed forms of interfirm credit. We propose a simple theory to account for the prevalence of such credit. A downstream firm trades off inventory holding costs against lost sales. Lost final sales impose a negative externality on the upstream firm. The solution requires a subsidy limited by the value of inputs. Allowing the downstream f...
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ژورنال
عنوان ژورنال: American Economic Journal: Microeconomics
سال: 2011
ISSN: 1945-7669,1945-7685
DOI: 10.1257/mic.3.1.245