We study the following question: How does competition influence the inventory holdings of General Motors' dealerships operating in isolated U.S. markets? We wish to disentangle two mechanisms by which local competition influences a dealer's inventory: (1) the entry or exit of a competitor can...

Automobile manufacturers in the U.S. supply chain exhibit significant differences in their days-of-supply of finished vehicles (average inventory divided by average daily sales rate). For example, from 1995 to 2004, Toyota consistently carried approximately 30 fewer days-of-supply than General...

We study the following question: how does competition influence the inventory holdings of General Motors' dealership operating in isolated U.S. markets? We wish to disentangle two mechanism by which local competition influences a dealer's inventory: (1) the entry or exit of a competitor can...

The Newsvendor model captures the trade-off faced by a decision maker that needs to place a firm bet prior to the occurence of a random event. Previous research in Operations Management has mostly focused on deriving the decision that minimizes the expected mismatch costs. In contrast, we...