Abstract

http://ssrn.com/abstract=1794837
 
 

References (1)



 
 

Citations (3)



 


 



The Effects of Capacity on Sales Under Alternative Vertical Contracts


Ioannis Ioannou


London Business School

Julie Holland Mortimer


affiliation not provided to SSRN

Richard Mortimer


Analysis Group, Inc.

March 2011

The Journal of Industrial Economics, Vol. 59, Issue 1, pp. 117-154, 2011

Abstract:     
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 under alternative vertical contracts. New monitoring technologies facilitated new supply contracts in this industry, reducing upfront costs of capacity but requiring minimum capacity purchases, strongly impacting stocking decisions. We find that larger capacity (more tapes) for a given title can substantially increase rentals of that title; and that alternative vertical contractual forms for distributing tapes from studios to retailers strongly impacts the relationship between capacity and rentals.

Number of Pages in PDF File: 38

Accepted Paper Series


Date posted: March 28, 2011  

Suggested Citation

Ioannou, Ioannis and Mortimer, Julie Holland and Mortimer, Richard, The Effects of Capacity on Sales Under Alternative Vertical Contracts (March 2011). The Journal of Industrial Economics, Vol. 59, Issue 1, pp. 117-154, 2011. Available at SSRN: http://ssrn.com/abstract=1794837 or http://dx.doi.org/10.1111/j.1467-6451.2011.00448.x

Contact Information

Ioannis Ioannou (Contact Author)
London Business School ( email )
Sussex Place
Regent's Park
London, NW1 4SA
United Kingdom
02070008748 (Phone)
HOME PAGE: http://www.london.edu
Julie Holland Mortimer
affiliation not provided to SSRN
No Address Available
Richard Mortimer
Analysis Group, Inc. ( email )
Boston
Feedback to SSRN


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