Pricing and Production Flexibility: An Empirical Analysis of the U.S. Automotive Industry

Published Online:https://doi.org/10.1287/msom.2015.0534

References

  • Abadie A, Imbens G (2002) Simple and bias-corrected matching estimators for average treatment effects. Working paper, National Bureau of Economic Research, Cambridge, MA.CrossrefGoogle Scholar
  • Berry S, Levinsohn J, Pakes A (1995) Automobile prices in market equilibrium. Econometrica 63(4):841–890.CrossrefGoogle Scholar
  • Busse M, Silva-Risso J, Zettelmeyer F (2006) 1,000 cash back: The pass-through of auto manufacturer promotions. Amer. Econom. Rev. 96(4):1253–1270.CrossrefGoogle Scholar
  • Cachon G, Olivares M (2010) Drivers of finished-goods inventory in the U.S. automobile industry. Management Sci. 56(1):202.LinkGoogle Scholar
  • Cachon G, Terwiesch C (2009) Matching Supply with Demand, Vol. 2 (McGraw-Hill, Singapore).Google Scholar
  • Ceryan O, Sahin O, Duenyas I (2013) Dynamic pricing of substitutable products in the presence of capacity flexibility. Manufacturing Service Oper. Management 15(1):86–101.LinkGoogle Scholar
  • Chod J, Rudi N (2005) Resource flexibility with responsive pricing. Oper. Res. 53(3):532–548.LinkGoogle Scholar
  • Dehejia RH, Wahba S (2002) Propensity score-matching methods for nonexperimental causal studies. Rev. Econom. Statist. 84(1):151–161.CrossrefGoogle Scholar
  • Fine CH, Freund RM (1990) Optimal investment in product-flexible manufacturing capacity. Management Sci. 36(4):449–466.LinkGoogle Scholar
  • Gopal A, Goyal M, Netessine S, Reindorp M (2013) The impact of new product introduction on plant productivity in the North American automotive industry. Management Sci. 59(10):2217–2236.LinkGoogle Scholar
  • Goyal M, Netessine S (2007) Strategic technology choice and capacity investment under demand uncertainty. Management Sci. 53(2):192–207.LinkGoogle Scholar
  • Goyal M, Netessine S, Randall T (2012) Deployment of manufacturing flexibility: An empirical analysis of the North American automotive industry. Working paper, available at SSRN: http://ssrn.com/abstract=2077659.Google Scholar
  • Guo S, Fraser MW (2009) Propensity Score Analysis: Statistical Methods and Applications, Vol. 12 (Sage Publications, Thousand Oaks, CA).Google Scholar
  • Heckman JJ (1978) Dummy endogenous variables in a simultaneous equation system. Econometrica 46(4):931–959.CrossrefGoogle Scholar
  • Hirano K, Imbens GW, Ridder G (2003) Efficient estimation of average treatment effects using the estimated propensity score. Econometrica 71(4):1161–1189.CrossrefGoogle Scholar
  • Huckman RS, Zinner DE (2008) Does focus improve operational performance? Lessons from the management of clinical trials. Strategic Management J. 29(2):173–193.CrossrefGoogle Scholar
  • Jordan WC, Graves SC (1995) Principles on the benefits of manufacturing process flexibility. Management Sci. 41(4):577–594.LinkGoogle Scholar
  • KC DS, Terwiesch C (2011) The effects of focus on performance: Evidence from California hospitals. Management Sci. 57(11):1897–1912.LinkGoogle Scholar
  • Maddala GS (1983) Limited-Dependent and Qualitative Variables in Econometrics, Econometric Society Monographs, No. 3 (Cambridge University Press, Cambridge, UK).CrossrefGoogle Scholar
  • Moreno A, Terwiesch C (2015) The effects of product line breadth: Evidence from the automotive industry. Working paper, available at SSRN: http://dx.doi.org/10.2139/ssrn.2241384.Google Scholar
  • Olivares M, Cachon GP (2009) Competing retailers and inventory: An empirical investigation of General Motors’ dealerships in isolated U.S. markets. Management Sci. 55(9):1586–1604.LinkGoogle Scholar
  • Parker RP, Wirth A (1999) Manufacturing flexibility: Measures and relationships. Eur. J. Oper. Res. 118(3):429–449.CrossrefGoogle Scholar
  • Rosenbaum PR, Rubin DB (1983) The central role of the propensity score in observational studies for causal effects. Biometrika 70(1):41–55.CrossrefGoogle Scholar
  • Rubin DB (2005) Causal inference using potential outcomes. J. Amer. Statist. Assoc. 100(469):322–331.CrossrefGoogle Scholar
  • Sethi AK, Sethi SP (1990) Flexibility in manufacturing: A survey. Internat. J. Flexible Manufacturing Systems 2(4):289–328.CrossrefGoogle Scholar
  • StataCorp (2013) Stata Treatment-Effects Reference Manual: Potential Outcomes/Counterfactual Outcomes (StataCorp, College Station, TX).Google Scholar
  • Van Mieghem JA (2008) Operations Strategy: Principles and Practice (Dynamic Ideas, Belmont, MA).Google Scholar
  • Van Mieghem JA, Dada M (1999) Price versus production postponement: Capacity and competition. Management Sci. 45(12):1631–1649.LinkGoogle Scholar
  • Wooldridge JM (2010) Econometric Analysis of Cross Section and Panel Data (MIT Press, Cambridge, MA).Google Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.