Scarcity Rents in Car Retailing: Evidence from Inventory Fluctuations at Dealerships

Florian Zettelmeyer, Fiona Scott Morton, Jorge Silva-Risso

NBER Working Paper No. 12177
Issued in May 2006

---- Acknowledgements -----

We are grateful for helpful comments from Severin Borenstein, Dennis Carlton, Jose Silva, Candi Yano, participants at the NBER IO Program Meeting, the Marketing in Israel Conference, seminar participants at UC Berkeley, and at the University of East Anglia. We are especially grateful to Meghan Busse for extensive comments and to Thomas Hubbard for the suggestion to look into inventories. In an early draft this paper was titled %u201CInventory Fluctuations and Price Discrimination: The Determinants of Price Variation in Car Retailing.%u201D Addresses for correspondence: School of Management, Yale University, PO Box 208200, New Haven CT 06520-8200; Haas School of Business, UC Berkeley, Berkeley CA 94720-1900; Anderson Graduate School of Management, UC Riverside, Riverside, CA 92521. E-mail: florian@haas.berkeley.edu, fiona.scottmorton@yale.edu, jorge.silva-risso@ucr.edu.

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