Plausibly Exogenous [1638] - Inventory (07/28/2024)

LHS Variable
Sales

RHS Variable
Carrying inventory

Source of Exogenous Variation
Random transitions of products in and out of inventory at the retailer’s central warehouse

- Baldauf, Eng-Larsson, and Isaksson (2023), “Where to cut the long tail? the value of carrying inventory in online retail”