Dynamic Pricing Under Debt: Spiraling Distortions and Efficiency Losses
Firms often finance their inventory through debt and subsequently sell it to generate profits and service the debt. Pricing of products is consequently driven by inventory and debt servicing considerations. We show that limited liability under debt induces sellers to charge higher prices and to disc...
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| Format: | Article |
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Institute for Operations Research and the Management Sciences (INFORMS)
2020
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| Online Access: | https://hdl.handle.net/1721.1/128735 |