New Economics Papers
on Industrial Organization
Issue of 2006‒06‒24
three papers chosen by

  1. Economic Surplus and Derived Demand By Ekkehart Schlicht
  2. Who should take over operations in a supply chain? By SANTIAGO KRAISELBURD
  3. The impact of supply chain applications annoucements on the market value of firms By GONZALO CHAVEZ; OSWALDO LORENZO

  1. By: Ekkehart Schlicht (University of Munich and IZA Bonn)
    Abstract: Most demand - especially labor demand - is derived from the demand for some other product. This note demonstrates that the usual analysis of economic rent, as typically explained for the case of consumers' surplus, carries over to the case of derived demand.
    Keywords: derived demand, indirect demand, consumers' surplus, economic rent
    JEL: D00 D61
    Date: 2006–06
  2. By: SANTIAGO KRAISELBURD (Instituto de Empresa)
    Abstract: When is having no previous contract better than having one, if ever? When should a manufacturer/retailer take over part (or all) of the other party´s operation, instead of considering just a contract? How about the opposite situation? This paper responds these questions in the context of a Supply Chain under a single period scenario where both the manufacturer and the retailer can exert uncontractible effort that may or may not be specific to the relationship.
    Keywords: newsvendor, Vendor Managed Inventory, retailer effort, Manufacturer effort, vertical integration
  3. By: GONZALO CHAVEZ (Instituto de Empresa); OSWALDO LORENZO (Instituto de Empresa)
    Abstract: We show that the announcement of SCM applications have a positive impact on the market value of firms using event study methodology. When SCM applications are disaggregated according to whether they are stand-alone SCM applications, or part of an enterprise system (SCM-ES) implementation, we find that the latter carry a significant value enhancement, while the former do not present a significant market reaction.
    Keywords: SCM applications, Event study

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