INVENTORY MANAGEMENT IN DECENTRALIZED MARKETS

• 成果类型: Article
• 署名作者: Li, Fei; Murry, Charles; Tian, Can; Zhou, Yiyi
• 署名单位: University of North Carolina; University of North Carolina Chapel Hill; University of North Carolina School of Medicine; Boston College; State University of New York (SUNY) System; Stony Brook University
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.12669
• 发表日期: 2024
• 页码: 431-470
• 关键词: price dispersion; search; middlemen; MODEL; intermediation; unemployment; uncertainty; INFORMATION; DYNAMICS; sellers

摘要

We present a directed search model of intermediaries' dynamic inventory and revenue management. Search frictions hinder instantaneous replenishment, prompting intermediaries to utilize dynamic inventory-based pricing and ordering strategies. In equilibrium, when inventory is high, an intermediary posts a lower retail price to speed up sales and depresses wholesale price to slow down purchases. We characterize the evolution dynamics of inventory holdings and their steady-state distribution, and extend the model to multiunit wholesale orders, product differentiation, and heterogeneous intermediaries. Using data from used-car dealers, we quantitatively evaluate the welfare consequence of used-car dealers' inventory management practice.