1 option
The Effects of Capacity on Sales Under Alternative Vertical Contracts / Ioannis Ioannou, Julie Holland Mortimer, Richard Mortimer.
- Format:
- Book
- Author/Creator:
- Ioannou, Ioannis.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w14611.
- NBER working paper series no. w14611
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2008.
- Summary:
- Retailer capacity decisions can impact sales for products by affecting, for example, availability and visibility. Using data from the U.S. video rental industry, we report estimates of the effect of capacity on sales. New monitoring technologies facilitated new supply contracts in this industry, which lowered the upfront costs of capacity and required minimum capacity purchases, strongly impacting stocking decisions. Under the traditional supply contract, capacity costs $44 per tape (avg) and the marginal tape produces 10.4 to 18.0 additional rentals. Under the new contract, capacity costs $7 per tape (avg) and the marginal tape produces 0 to 4.9 additional rentals.
- Notes:
- Print version record
- December 2008.
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.