Access the full text.
Sign up today, get DeepDyve free for 14 days.
Loading next page...
/lp/wiley/inventories-and-the-automobile-market-22Jst890lo
References (67)
-
Aviv Nevo (2001)
Measuring Market Power in the Ready-to-Eat Cereal IndustryPublic Economics
-
Steven Berry, J. Levinsohn, A. Pakes (1999)
Voluntary Export Restraints on Automobiles: Evaluating a Trade PolicyThe American Economic Review, 89
-
Nevo Nevo (2000)
A Practitioner's Guide to Estimation of Random Coefficients Logit Models of DemandJournal of Economics & Management Strategy, 9
-
Ashley Langer (2009)
Demographic Preferences and Price Discrimination in New Vehicle Sales∗ -
Ş. Akın, Brennan Platt (2011)
Searching on a Deadline -
A. Federgruen, A. Heching (1999)
Combined Pricing and Inventory Control Under UncertaintyOper. Res., 47
-
Amil Petrin (2001)
Quantifying the Benefits of New Products: The Case of the MinivanJournal of Political Economy, 110
-
D. Hamermesh (1988)
Labor Demand and the Structure of Adjustment CostsNBER Working Paper Series
-
James Kahn (1986)
Inventories and the volatility of productionThe American Economic Review, 77
-
Amna Kirmani, Peter Wright, J. Roberts (1988)
Demand Uncertainty and Sales: A Study of Fashion and Markdown PricingThe American Economic Review, 78
-
N. Crouzet, Hyunseung Oh (2012)
Can news shocks account for the business-cycle dynamics of inventories? -
Steven Berry, J. Levinsohn, A. Pakes (1995)
Automobile Prices in Market EquilibriumEconometrica, 63
-
Gérard Cachon, M. Olivares (2010)
Drivers of Finished-Goods Inventory in the U.S. Automobile IndustryERN: Production; Cost; Capital & Total Factor Productivity; Value Theory (Topic)
-
Aizcorbe (2010)
Heterogeneous Car Buyers: A Stylized FactEconomic Letters, 109
-
Elmaghraby Elmaghraby, Keskinocak Keskinocak (2003)
Dynamic Pricing in the Presence of Inventory Considerations: Research Overview, Current Practices, and Future DirectionsManagement Science, 49
-
Adam Copeland (2009)
The Dynamics of Automobile Expenditures -
Steven Berry (1994)
Estimating Discrete-Choice Models of Product DifferentiationThe RAND Journal of Economics, 25
-
Pasquale Schiraldi (2010)
Automobile Replacement: A Dynamic Structural ApproachIO: Empirical Studies of Firms & Markets
-
P. Goldberg (1995)
Product Differentiation and Oligopoly in International Markets: The Case of the U.S. Automobile IndustryEconometrica, 63
-
Aviv Nevo, Jeffrey Dubin, Daniel McFadden, T. Bresnahan, Steven Berry (1999)
Measuring Market Power in the Ready-to-Eat Cereal Industry -
Florian Zettelmeyer, Fiona Morton, Jorge Silva-Risso (2005)
Inventory Fluctuations and Price Discrimination: The Determinants of Price Variation in Car Retailing -
B. Pashigian, B. Bowen, Eric Gould (1995)
Fashion, Styling, and the Within-Season Decline in Automobile PricesThe Journal of Law and Economics, 38
-
Ackerberg (2005)
Unobserved Product Differentiaion in Discrete-Choice Models: Estimating Price Elasticities and Welfare EffectsRAND Journal of Economics, 36
-
K. Arrow, T. Harris, J. Marschak (1951)
Optimal Inventory Policy.Econometrica, 19
-
Gérard Cachon, M. Olivares (2009)
Drivers of Finished Goods Inventory Performance in the U.S. Automobile IndustryColumbia Business School Research Paper Series
-
Bils (2000)
What Inventory Behavior Tells Us about Business CyclesAmerican Economic Review, 90
-
Hamermesh Hamermesh (1989)
Labor Demand and the Structure of Adjustment CostsAmerican Economic Review, 79
-
Hing-Man Leung (2000)
Intertemporal Price Discrimination -
G. Hall (2000)
Non-Convex Costs and Capital Utilization: A Study of Production Scheduling at Automobile Assembly PlantsJournal of Monetary Economics, 45
-
Aizcorbe (2005)
Moore's Law and the Semiconductor Industry: A Vintage ModelScandinavian Journal of Economics, 107
-
James Kahn (1992)
Why is Production More Volatile than Sales? Theory and Evidence on the Stockout-Avoidance Motive for Inventory-HoldingQuarterly Journal of Economics, 107
-
Note: This table is an alternative version of Table 8. The difference is that the simulated data are generated by a model with cross-price elasticities between vintages of the same model set to 0 -
Ana Aizcorbe, Samuel Kortum (2005)
Moore's Law and the Semiconductor Industry: A Vintage ModelIO: Productivity
-
Judith Chevalier, Austan Goolsbee (2005)
Are Durable Goods Consumers Forward Looking? Evidence from College TextbooksIO: Empirical Studies of Firms & Markets
-
I. Ayres, Peter Siegelman (1995)
Race and Gender Discrimination in Bargaining for a New CarThe American Economic Review, 85
-
E. Lazear (1984)
Retail Pricing and Clearance Sales -
Adam Copeland, A. Shapiro (2010)
The Impact of Competition on Technology Adoption: An Apples-to-PCs AnalysisMicroeconomics: Production
-
Adam Copeland, G. Hall (2005)
The Response of Prices, Sales, and Output to Temporary Changes in DemandYale: Cowles Foundation Working Papers
-
M. Bils, James Kahn (1999)
What Inventory Behavior Tells Us About Business CyclesNBER Working Paper Series
-
Victor Aguirregabiria (1999)
THE DYNAMICS OF MARKUPS AND INVENTORIES IN RETAILING FIRMSThe Review of Economic Studies, 66
-
Gautam Gowrisankaran, Marc Rysman (2007)
Dynamics of Consumer Demand for New Durable GoodsJournal of Political Economy, 120
-
W. Pesendorfer (1995)
Design Innovation and Fashion CyclesThe American Economic Review, 85
-
Chevalier (2009)
Are Durable Goods Consumers Forward Looking? Evidence from the College Textbook MarketQuarterly Journal of Economics, 125
-
T. Bresnahan, P. Reiss (1985)
Dealer and manufacturer marginsThe RAND Journal of Economics, 16
-
Patricia Reagan (1982)
Inventory and Price BehaviourThe Review of Economic Studies, 49
-
T. Whitin (1955)
Inventory Control and Price TheoryManagement Science, 2
-
M. Keane (2010)
A Structural Perspective on the Experimentalist SchoolJournal of Economic Perspectives, 24
-
Bresnahan (1994)
Output Fluctuations at the Plant LevelQuarterly Journal of Economics, 109
-
Fiona Morton, Florian Zettelmeyer, Jorge Silva-Risso (2003)
Consumer Information and Discrimination: Does the Internet Affect the Pricing of New Cars to Women and Minorities?Quantitative Marketing and Economics, 1
-
(2006)
Measuring the Implications of Sales and Consumer Inventory Behavior -
C. Corrado, M. Otoo, W. Dunn (2006)
Incentives and Prices for Motor Vehicles: What Has Been Happening in Recent Years?Macroeconomics eJournal
-
J. Conlisk, Eitan Gerstner, J. Sobel (1984)
Cyclic Pricing by a Durable Goods MonopolistQuarterly Journal of Economics, 99
-
Wedad Elmaghraby, P. Keskinocak (2003)
Dynamic pricing in the presence of inventory considerations: research overview, current practices, and future directionsIEEE Engineering Management Review, 31
-
V. Ramey, D. Vine (2005)
Declining Volatility in the U.S. Automobile IndustryMacroeconomics eJournal
-
(2010)
A Simple Model of Demand Accumulation -
Daniel Ackerberg, Marc Rysman (2002)
Unobserved Product Differentiation in Discrete Choice Models: Estimating Price Elasticities and Welfare EffectsMicroeconomic Theory eJournal
-
Aviv Nevo (2000)
A Practitioner's Guide to Estimation of Random‐Coefficients Logit Models of DemandERN: Other Microeconomics: Decision-Making under Risk & Uncertainty (Topic)
-
A. Kashyap, Owen Lamont, J. Stein (1994)
Credit Conditions and the Cyclical Behavior of InventoriesQuarterly Journal of Economics, 109
-
Ana Aizcorbe, Benjamin Bridgman, Jeremy Nalewaik (2009)
Heterogeneous car buyers: a stylized factSocial Science Research Network, 2009
-
O. Blanchard (1982)
The Production and Inventory Behavior of the American Automobile IndustryJournal of Political Economy, 91
-
No claim to original US government works -
Meghan Busse, Jorge Silva-Risso, Florian Zettelmeyer (2006)
$1,000 Cash Back: The Pass-Through of Auto Manufacturer PromotionsThe American Economic Review, 96
-
Cachon (2010)
Drivers of Finished Goods Inventory in the U.S. Automobile IndustryManagement Science, 56
-
Florian Zettelmeyer, Fiona Morton, Jorge Silva-Risso (2006)
Scarcity Rents in Car Retailing: Evidence from Inventory Fluctuations at DealershipsIO: Theory
-
Kathryn Graddy, G. Hall (2009)
A Dynamic Model of Price Discrimination and Inventory Management at the Fulton Fish MarketCEPR Discussion Paper Series
-
P. Goldberg (1996)
Dealer Price Discrimination in New Car Purchases: Evidence from the Consumer Expenditure SurveyJournal of Political Economy, 104
-
T. Bresnahan, V. Ramey (1992)
Output Fluctuations at the Plant LevelMacroeconomics eJournal
- Publisher
- Wiley
- Copyright
- Copyright © 2011, RAND. No claim to original US government works
- ISSN
- 0741-6261
- eISSN
- 1756-2171
- DOI
- 10.1111/j.1756-2171.2010.00128.x
- Publisher site
- See Article on Publisher Site
Abstract
This article studies the within‐model‐year pricing, production, and inventory management of new automobiles. Using new monthly data on U.S. transaction prices, we document that, for the typical vehicle, prices fall over the model year at a 9.0% annual rate. Concurrently, both sales and inventories are hump shaped. To explain these time series, we formulate an industry model for new automobiles in which inventory and pricing decisions are made simultaneously. The model predicts that automakers' build‐to‐stock inventory management policy substantially influences the time series of prices and sales, accounting for four tenths of the price decline observed over the model year.
Journal
The Rand Journal of Economics – Wiley
Published: Mar 1, 2011