Inventories in a Competitive Environment.

S-Tier
Journal: Journal of Political Economy
Year: 1993
Volume: 101
Issue: 5
Pages: 863-86

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Trade is sequential: buyers arrive in batches and each batch completes trade before the next arrives. Producers allocate the available supply among all potential batches of buyers. Inventories accumulate whenever a batch does not arrive. Shocks to cost and demand are serially independent. There is a stationary relationship between inventories and prices with the following properties. Larger beginning-of-period inventories tend to depress prices. Inventories are positively serially correlated. A unit increase in inventories leads to an increase in the price spread. Output tends to vary more than sales. Copyright 1993 by University of Chicago Press.

Technical Details

RePEc Handle
repec:ucp:jpolec:v:101:y:1993:i:5:p:863-86
Journal Field
General
Author Count
2
Added to Database
2026-01-24