Production, inventory and waiting time

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2 Scopus citations


In this paper, I introduce the idea of adjusting waiting time as an alternative to price adjustment in order to study the relationship between waiting time, demand, profits and inventories. In the model, demand depends on both price and waiting time. Consumers are willing to pay more if they do not have to wait long. I derive the conditions under which a monopoly may profit from utilizing the option of holding inventory by changing the waiting time facing the consumers.

Original languageEnglish
Pages (from-to)579-589
Number of pages11
JournalManagerial and Decision Economics
Issue number6
StatePublished - Sep 2007


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