The inventory level shown in the Information System contrary to popular belief and assumptions in most academic papers and in spite of the considerable amounts invested in information technology, is often inaccurate. The inventory inaccuracy occurs when the inventory shown in the Information System is not in agreement with the actually available inventory. In this paper, we first describe the m...

Consumer goods manufacturers usually sell their brands to consumers through common independent retailers. Theoretical research on such channel structures has analyzed the optimal behavior of channel members under alternative assumptions of manufacturer-retailer interaction (Vertical Strategic Interaction). Research in Empirical Industrial Organization has focused on analyzing the competitive in...

We develop a model of vertical pricing in which an original manufacturer sets wholesale prices in two markets integrated at the distributor level by parallel imports (PI). In this context we show that if competition policy requires uniform wholesale prices across locations it would push retail prices toward convergence as transportation costs fall. However, these retail prices could be higher t...

A model with costly adjustment of production and costly inventories implies that wholesale gasoline prices will respond with a lag to crude oil cost shocks. Unlike explanations that rely upon menu costs, imperfect information, or long-term buyer/seller relationships, this model also predicts that futures prices for gasoline will adjust incompletely to crude oil price shocks that occur close to ...

........................................................................................................... Chapter One: 1.0 Introduction................................................................................................... 1.1 Scope of research.................................................................................... 1.2 Research Problem Definition..........................

This paper develops new techniques to assess the expanse of the geographic market under varying supply and demand conditions and applies these techniques to the current wholesale electricity market in the western United States. This paper finds that, by and large, the expanse of the geographic market extends across most of the western United States, but that conditions which create congestion a...

In this paper, we study demand disruption in service supply chain with a client and a vendor. We find the positive demand disruption worse off the double marginalization under wholesale contracts. To address the challenge, we propose a two-part tariff contract under which, the client pays the vendor a fixed fee besides the wholesale price if the service rate was met. The results show the channe...

In this paper, we analyze the incentives of an incumbent and an entrant to migrate from an “old” technology to a “new” technology, and discuss how the terms of wholesale access affect this migration. We show that a higher access charge on the legacy network pushes the entrant firm to invest more, but has an ambiguous effect on the incumbent’s investments, due to two conflicting effects: the who...

We develop a reduced-form model of price transmission in a vertical sector, allowing for refined asymmetric, contemporaneous and lagged, own and cross price effects under time-varying volatility. The model is used to investigate wholesale-retail price dynamics in the US butter market. The analysis documents the nature of nonlinear price dynamics in a vertical sector, with implications for price...

T paper examines the inventories of publicly traded U.S. retail and wholesale companies between 1981 and 2004. First, we document that inventory holdings have been reduced. The median of wholesale inventory holding periods was reduced from 73 days to 49 days. Retail inventory did not start to decline until about 1995. Second, we document that firms with abnormally high inventories have abnormal...