Victor Aguirregabiria, Francis Guiton
arXiv 9 Jul 2023 · Econometrics · 2 citations (OpenAlex)
arXiv:2307.05562 · PDF · DOI · OpenAlex · Extracted main text
This paper investigates the impact of decentralizing inventory decision-making in multi-establishment firms using data from a large retail chain. Analyzing two years of daily data, we find significant heterogeneity among the inventory decisions made by 634 store managers. By estimating a dynamic structural model, we reveal substantial heterogeneity in managers' perceived costs. Moreover, we observe a correlation between the variance of these perceptions and managers' education and experience. Counterfactual experiments show that centralized inventory management reduces costs by eliminating the impact of managers' skill heterogeneity. However, these benefits are offset by the negative impact of delayed demand information.
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The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.
| Reference | Intensity | Mentions | Sections | Main text | |
|---|---|---|---|---|---|
| 1 | V. Aguirregabiria, D. Ershov, and J. Suzuki (2016) Estimating the effects of deregulation in the ontario wine retail market | 1.000 | 6 | 3 | 100% |
| 2 | J. Adda and R. Cooper (2000) Balladurette and juppette: A discrete analysis of scrapping subsidies | 0.811 | 4 | 2 | 100% |
| 3 | O. Attanasio (2000) Consumer durables and inertial behaviour: Estimation and aggregation of (s, s) rules for automobile purchases | 0.811 | 4 | 2 | 100% |
| 4 | S. DellaVigna and M. Gentzkow (2019) Uniform pricing in us retail chains | 0.811 | 4 | 2 | 100% |
| 5 | J. Eberly (1994) Adjustment of consumers' durables stocks: Evidence from automobile purchases | 0.811 | 4 | 2 | 100% |
| 6 | A. Hortacsu, O. Natan, H. Parsley, T. Schwieg, and K. Williams (2021) Organizational structure and pricing: Evidence from a large us airline | 0.811 | 4 | 2 | 100% |
| 7 | Liquor Control Board of Ontario (2016) An introduction to web based ordering & sos (store order services), 2016 | 0.811 | 4 | 2 | 100% |
| 8 | V. Aguirregabiria (1999) The dynamics of markups and inventories in retailing firms | 0.737 | 3 | 2 | 100% |
| 9 | R. Bray, Y. Yao, Y. Duan, and J. Huo (2019) Ration gaming and the bullwhip effect | 0.737 | 3 | 2 | 100% |
| 10 | V. Aguirregabiria and P. Mira (2002) Swapping the nested fixed point algorithm: A class of estimators for discrete markov decision models | 0.693 | 6 | 1 | 100% |
Showing the top 10 of 39 scored citations.
arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.
| Citing paper | Intensity | Mentions | Sections | |
|---|---|---|---|---|
| 1 | Nested Pseudo-GMM Estimation of Demand for Differentiated Products | 0.511 | 2 | 1 |