How Market Power Affects Dynamic Pricing: Evidence from Inventory Fluctuations at Car Dealerships
Israeli A, Scott-Morton F, Silva-Risso J, Zettelmeyer F. How Market Power Affects Dynamic Pricing: Evidence from Inventory Fluctuations at Car Dealerships. Management Science 2022, 68: 895-916. DOI: 10.1287/mnsc.2021.3967.Peer-Reviewed Original ResearchMarket powerTransaction pricesCeteris paribusDynamic pricingProfit marginInventory fluctuationsInventory shortageInventory levelHigher market powerLow market powerPresence of inventoriesScarcity rentsJuanjuan ZhangRetail industryCar dealershipsSelling areaAutomotive dealershipsPricesAverage carDealershipsDealersPricingShort supplyFirmsRents