סמינר באסטרטגיה וכלכלת עסקים

Ioannis Stamatopoulos (UT Austin)

We study the supply chain implications of dynamic pricing. Specifically, we estimate how reducing menu costs---the operational burden of adjusting prices---would affect supply chain stability. To do so, we fit a structural econometric pricing and ordering model to data from a large Chinese supermarket. We estimate that removing menu costs would stabilize the supply chain, both downstream and upstream. Specifically, we estimate that this change would decrease the median sales coefficient of variation from 1.43 to 1.35 and decrease the median shipment coefficient of variation from 3.79 to 3.65.

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