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Effects of product availability : experimental evidence

Author: Christopher T Conlon; Julie Holland Mortimer; National Bureau of Economic Research.
Publisher: Cambridge, Mass. : National Bureau of Economic Research, ©2010.
Series: Working paper series (National Bureau of Economic Research), no. 16506.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Summary:
Product availability impacts many industries such as transportation, events, and retail, yet little empirical evidence documents the importance of stocking decisions for firm profits, vertical relationships, or consumers. We conduct several experiments, exogenously removing top-selling products from a set of vending machines and analyzing substitution patterns and profit impacts of the changed product availability  Read more...
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Additional Physical Format: Print version:
Conlon, Christopher T. (Christopher Thomas).
Effects of product availability.
Cambridge, Mass. : National Bureau of Economic Research, ©2010
(DLC) 2011655757
Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Christopher T Conlon; Julie Holland Mortimer; National Bureau of Economic Research.
OCLC Number: 676688897
Description: 1 online resource (40 pages).
Series Title: Working paper series (National Bureau of Economic Research), no. 16506.
Responsibility: Christopher T. Conlon, Julie Holland Mortimer.

Abstract:

Product availability impacts many industries such as transportation, events, and retail, yet little empirical evidence documents the importance of stocking decisions for firm profits, vertical relationships, or consumers. We conduct several experiments, exogenously removing top-selling products from a set of vending machines and analyzing substitution patterns and profit impacts of the changed product availability using nonparametric analyses and structural demand estimation. We find substantial switching to alternate products, and evidence of misaligned incentives between upstream and downstream firms in the choice of which products to carry. We discuss the trade-offs of both empirical approaches for analyzing product availability effects generally.

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