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Pricing, Variety, and Inventory Decisions in Retail Operations ManagementMaddah, Bacel 25 February 2005 (has links)
This dissertation is concerned with decision making in retail operations management. Specifically, we focus on pricing, variety, and inventory decisions, which are at the interface of the marketing and operations functions of a retail firm. We consider two problems that relate to two major types of retail goods. First, we study joint pricing, variety, and inventory decisions for a set of substitutable" items that serve the same need for the consumer (commonly referred to as a "retailer's product line"). Second, we present a novel model of a selling strategy for "complementary" items that we refer to as ``convenience tying," and focus on analyzing the effect of this selling strategy on pricing and profitability. We also study inventory decisions under convenience tying and exogenous pricing.
For a product line of substitutable items, the retailer's objective is to jointly determine the set of variants to include in her product line ("assortment"), together with their prices and inventory levels, so as to maximize her expected profit. We model the consumer choice process using a multinomial logit choice model and consider a newsvendor type inventory setting. We derive the structure of the optimal assortment for a special case where the non-ascending order of items in mean consumer valuation and the non-descending order of items in unit cost agree. For this special case, we find that an optimal assortment has a limited number of items with the largest values of the mean consumer valuation (equivalently, the items with the smallest values of the unit cost). For the general case, we propose a dominance rule that significantly reduces the number of different subsets to be considered when searching for an optimal assortment.
We also present bounds on the optimal prices that can be obtained by solving single variable equations. Finally, we combine several observations from our analytical and numerical study to develop an efficient heuristic procedure, which is shown to perform well on many numerical tests.
With the objective of gaining further insights into the structure of the retailer's optimal decisions, we study a special case of the product line problem with "similar items" having equal unit costs and identical reservation price distributions. We also assume that all items in a product line are sold at the same price. We focus on two situations: (i) the assortment size is exogenously fixed, while the retailer jointly determines the pricing and inventory levels of items in her product line; and (ii) the pricing is exogenously set, while the retailer jointly determines the assortment size and inventory levels. We also briefly discuss the joint pricing/variety/inventory problem where the pricing, assortment size, and inventory levels are all decision variables.
In the first setting, we characterize the structure of the retailer's optimal pricing and inventory decisions. We then study the effect of limited inventory on the optimal pricing by comparing our results (in the ``risky case" with limited inventory) with the ``riskless case," which assumes infinite inventory levels. In addition, we gain insights on how the optimal price changes with product line variety as well as demand and cost parameters, and show that the behavior of the optimal price in the risky case can be quite different from that in the riskless case.
In the second setting, we characterize the retailer's optimal assortment size considering the trade-off between sales revenue and inventory costs. Our stylized model allows us to obtain strong structural and monotonicity results. In particular, we find that the expected profit at optimal inventory levels is unimodal in the assortment size, which implies that the optimal assortment size is finite. By comparison to the riskless case, we find that this finite variety level is due to inventory costs.
Finally, for the joint pricing/variety/inventory problem, we find that even when the retailer has control over the price, finite inventories still restrict the variety level. We also propose several bounds that can be useful in solving the joint problem.
We then study a convenience tying strategy for two complementary items that we denote by "primary" and "secondary." The retailer sells the primary item in an appropriate department of her store. In addition, to stimulate demand, the secondary item is offered in two locations: its appropriate department and the primary item's department where it is displayed in very close proximity to the primary item. We analyze the profitability of this selling practice by comparing it to the traditional independent components strategy, where the two items are sold independently (each in its own department). We focus on understanding the effect of convenience tying on pricing. We also briefly discuss inventory considerations. First, assuming infinite inventory levels, we show that convenience tying decreases the price of the primary item and adjusts the price of the secondary item up or down depending on its popularity in the primary item's department. We also derive several structural and monotonicity properties of the optimal prices, and provide sufficient conditions for the profitability of convenience tying. Then, under exogenous pricing, we find that convenience tying is profitable only if it generates enough demand to cover the increase in inventory costs due to decentralizing the sales of the secondary item. / Ph. D.
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Residential Preference at Transit-oriented Development: A Visual Choice ExperimentAlsaiari, Hamad Nasser 28 November 2018 (has links)
Insufficient knowledge of residential preferences represents a major obstacle to achieving residential satisfaction and quality of life. This obstacle is even greater in the case of transit-oriented developments (TODs), as their success depends, in part, on the degree to which people's preferences are consistent with their residential environments. This study employed a visual choice experiment, which combines the benefits of visual preference surveys and discrete choice experiments, to elicit residential preference for TODs in Riyadh, Saudi Arabia, before the opening of its citywide public transportation system. Using a seemingly homogeneous sample of participants, the analysis incorporated three analytical methods to elicit residential preference: a multinomial logit model, a mixed logit model, and a latent class model. The results indicated the presence of preference heterogeneity and the emergence of four lifestyle classes that could explain and predict residential preference patterns. People with similar sociodemographic characteristics may have different lifestyles based on their choice behavior, marital status, and public transit attitudes. Additionally, the results showed a strong preference for low-density housing, even among those who favor living in a TOD; however, increasing density could be mitigated through the presence of other TOD attributes. The findings of this research point to the diversity of residential preferences and suggest that providing a variety of residential environments increases the likelihood that people will find their preferred environment. Additionally, planning efforts to convert all developments near transit, particularly in suburban locations, to TODs might be unsuitable in cities where public transportation has been introduced only recently. Instead, deferring TOD conversion efforts until public transportation and its use are mature may attract people to live near transit and encourage the gradual development of transit affinity in residents who may otherwise reject TOD living completely. Lastly, the successful application of a visual choice experiment in this research opens up a variety of potential analytical methods that are used commonly in other fields and have the potential to move visual preference research into the realm of robust empirical investigation. / Ph. D. / The work of urban planners, urban designers, architects, and policy makers centers on improving the built environment and increasing the quality of people’s lives. However, their work entails making decisions that are not always in tandem with people’s preferences (e.g., increasing housing density, proposing a mix of land uses in residential neighborhoods, introducing public transportation close to where people live and work, to name a few). Due to the uncertainty surrounding people’s acceptance of modifications of the built environment, especially when it entails introducing residential attributes for the first time, this dissertation focused on 1) assessing residential preference near public transportation nodes in Riyadh, Saudi Arabia before operation of the public transportation system, and 2) assessing the extent to which advanced analytical methods are capable of providing a better understanding of residential preference differences among a seemingly homogenous sample of participants. The work in this dissertation was motivated by the increasing use of manipulated images in choice tasks, where participants are presented with multiple images, each depicting a residential scenario, as bundles to choose from, and their choice patterns then recorded and analyzed. The results showed that among the relatively homogenous sample of participants that was recruited, four significant residential preference patterns have emerged, which could be used to describe and predict residential preference and choice with great accuracy. This dissertation laid out several policy implications that could be useful in providing a built environment that matches with what people want. It also provided research implications and suggestions on the use of visual choice experiments for urban planners and designers that are well-developed in other fields of inquiry.
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Anwendung von Discrete Choice Experimenten in der Agrarökonomie - Präferenzstruktur und Zahlungsbereitschaft von Landwirten bei Entscheidungen in den Bereichen Vermarktung, Kooperationen, Investitionen und Vertragsanbau / Discrete choice experiments in agricultural economics - farmers' preference structure and willingness to pay in different decision situationsAnastassiadis, Friederike 09 November 2015 (has links)
Die vier Beiträge der vorliegenden Dissertationsschrift untersuchen das Entscheidungsverhalten von Landwirten in unterschiedlichen Entscheidungssituationen. Das übergeordnete Ziel ist es, die Präferenzstruktur und Zahlungsbereitschaft von Landwirten in den untersuchten Entscheidungssituationen zu analysieren, um so die Informationsgrundlage als Entscheidungsbasis für Politiker und Berater sowie der Landwirte selbst zu erweitern. Hierzu findet die Methode der Discrete Choice Experimente in allen vier Beiträgen Anwendung.
Im Einzelnen werden in den Beiträgen folgende Forschungsfragen untersucht: Der erste Beitrag prüft welche Faktoren die Entscheidung von Landwirten beeinflussen, den Preis für ihr Erntegut ex ante abzusichern. Im zweiten Beitrag werden die Präferenzen von Landwirten für das Eingehen einer Kooperation unter expliziter Berücksichtigung von nicht-monetären Faktoren analysiert. Der dritte Beitrag geht der Frage nach, welche Rolle die finanzielle Flexibilität in Investitionsentscheidungen von Landwirten spielt. Wie Anbauverträge für Biogas-Zuckerrüben aus Sicht der anbauenden Landwirte ausgestaltet sein müssen, wird im vierten Beitrag geklärt.
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An application of stated choice to the valuation of bus attributes : a case study of Dhaka, BangladeshMamun, M. A. A. January 2014 (has links)
Bus is the main mode of urban transport in most cities in developing countries. Despite a high mode share, bus service quality is often poor and para-transit services are regarded as a problem in urban transport systems rather than a solution. Using Dhaka as a case study, this thesis investigates bus service quality through identification and valuation of thirteen important attributes using discrete choice models. The attributes examined are travel time, travel cost, waiting time, headway, priority seats for women, crowding inside the bus, boarding and alighting, picking up and dropping off passengers, bus stop facilities, driving quality, driver and crew behaviour, cleanliness inside the bus, and air conditioning. Five focus groups were conducted to identify key qualitative bus attributes and their levels in order to design choice experiments for valuation. A survey of 431 respondents in Dhaka was then undertaken. Two choice experiments were designed and implemented within the survey, each with seven attributes (set A and set B) with travel cost as the common attribute. Multinomial Logit (MNL) models and Mixed Logit (MXL) models were developed using the Dhaka choice data. Twelve of the thirteen attributes were statistically significant at the 99% level. The values of in-vehicle time (IVT), waiting time and headway were BDT 34.80, 47.40 and 64.20 per hour respectively for low income groups in the segmented model. Waiting time has a premium valuation, 1.36 times higher than IVT, which endorses existing evidence. The highest valuation is for the dummy variable seating all the way which is BDT 42.20 for high income females. The next largest was bus stops properly, picks and drops passengers nicely , followed by wide door and mild steps for boarding and alighting , smooth and safe journey , bus stop with shed, but no seating arrangements , and air conditioning . The lowest value was BDT 4.61 for deck and seats are clean and tidy , for the low income group. The WTP for the qualitative attributes is high, but given the poor level of the existing service and low fare levels this seems reasonable. Income has a significant impact on travel cost, as well as gender on priority seats for women and crowding inside the bus. However, household car ownership does not have a significant impact on any of the bus attributes examined. The high income group has 75% higher WTP for A set attributes and 79% higher WTP for B set attributes than low income group. Females have 76% higher WTP for standing comfortably all the way , but 38% higher WTP for seating all the way compared to the male. However, females have a WTP of BDT 0.44 for per percent of priority seats for women in contrast with males who have a WTP of BDT -0.11. There is significant taste heterogeneity for both quantitative and qualitative attributes. The qualitative attributes for picking up and dropping off passengers, boarding and alighting facilities and driving facilities have higher valuation and this attributes came from the existing within the market competition structure in a highly fragmented bus market. Therefore, it is recommended to introduce competition for the market and incentives for bus industry consolidation.
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Essays on complementarity : organizational and market changes in agriculture / Essais sur la complémentarité : changements organisationnels et de marché en agricultureRaza, Saqlain 29 January 2014 (has links)
Cette thèse vise à tester pour l’existence d’effet de complémentarités entre différentes activités économiques dans le secteur agricole. Pour cela, nous mobilisons les deux approches que proposent la littérature, à savoir l’approche par la productivité et l’approche par l’adoption. Nous commençons par une revue de la littérature sur l’économie de la complémentarité, en nous focalisant sur ces deux approches de la complémentarité et ses modèles empiriques. Nous proposons ensuite trois analyses empiriques permettant de tester ces modèles. La première explore les déterminants du choix de marque et/ou de signes des qualité par les petites coopératives agricoles françaises, avec un focus particulier sur la coexistence de ces deux signes. La seconde fournit un test direct de complémentarité entre labels et marques en recourant à l’approche par l’adoption. En estimant un probit multinomial, il est en effet possible de séparer l’effet de complémentarité de celui de l’hétérogénéité inobservable. La troisième introduit l’approche par la productivité, en sus de l’approche par l’adoption, pour tester de cet eet de complémentarité dans les systèmes de polyculture élevage adoptés par les petits exploitants de la province du Pendjab au Pakistan. / The main objective of this thesis is to test for complementarity between different economic activities in agriculture. To do this, we have recourse to the two approaches proposed by the literature, i.e. the productivity approach and the adoption approach. First, we review the economics of complementarity and analyze the different empirical models to test for complementarity. Then, we propose three empirical analyses testing these models. The first examine closely the drivers of the branding and labeling strategies from French small agricultural co-operatives, with a focus on the coexistence of both quality signals. The second directly test for complementarity between branding and labeling using the adoption approach, by estimating a multinomal probit. This allow us to separate what is really due to complementarity and what is caused by unobserved heterogeneity. Third, in addition to adoption approach, we test for complementarity using a productivity approach in the mixed farming systems adopted by smallholder farmers in Punjab, Pakistan.
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Não são só 20 centavos: efeitos sobre o tráfego da Região Metropolitana de São Paulo devido a redução na tarifa de ônibus financiada pelo aumento da CIDE nos combustíveis da cidade de São Paulo / It is not only 20 cents: effects on traffic in the Metropolitan Region of São Paulo due to reduction in bus fare financed by increased fuel tax in São Paulo cityBarcellos, Thaís Mendonça 26 June 2014 (has links)
Em junho de 2013, o reajuste de R$ 0,20 na tarifa de ônibus gerou uma série de manifestações populares no país que acabaram fazendo alguns governos, como o da cidade de São Paulo, voltarem atrás e arcarem com essa diferença com as empresas de ônibus. Visto isso, o prefeito de São Paulo, Fernando Haddad, propôs uma política de municipalização de um tributo imposto sobre a gasolina, a CIDE, para financiar o transporte público urbano. Nesse contexto, foi encomendada uma pesquisa a Fundação Getúlio Vargas para responder a magnitude do impacto desse subsídio cruzado entre usuários do transporte privado e coletivo. Esse trabalho utiliza o resultado encontrado por essa pesquisa para responder qual o efeito sobre o tráfego da Região Metropolitana de São Paulo utilizando dados da Pesquisa de Origem e Destino de 2007. Os resultados encontrados mostram que a política de subsídio cruzado proporciona um baixo deslocamento no fluxo dos modos de transporte. Além disso, a análise de bem estar da política mostra que os mais favorecidos são os indivíduos de baixa renda. A estimação é feita com base em dois modelos de escolha discreta (Multinomial e Mixed Logit), separada por dois motivos de viagem: trabalho e estudo. E, as simulações de deslocamento de demanda utilizam dois valores de tributos, R$ 0,10 e R$ 0,50. / In June 2013, the increase of 0.20 BRL in bus fare has emerged a series of popular demonstrations in the country that ended up making some governments, such as the city of São Paulo, backtrack and pay out this difference with the buses company. So, the mayor of São Paulo, Fernando Haddad, proposed a policy of decentralization of a tax imposed on gasoline, CIDE, to finance urban public transport. In this context, a report was commissioned to Fundação Getúlio Vargas to respond the magnitude of the impact of cross-subsidy between users of private and collective transport. This work uses the results found in this report to answer the effect on traffic in the Metropolitan Region of São Paulo using data from the Source and Destination Survey of 2007. Results show that the cross-subsidy policy provides a low offset in the flow modes of transport. Moreover, the analysis of welfare policy shows that the most favored are the low-income individuals. The estimation is based on two discrete choice models (Multinomial and Mixed Logit), separate for two reasons of trips: work and study. And the simulations of displacement demand use two values of taxes, 0.10 and 0.50 BRL.
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Trabalho domiciliar feminino no Brasil: determinantes familiares e produtivos do trabalho remunerado exercido no próprio domicílio / Home-based work in Brazil: household and productive determinants for remunerated work at homeMartinez, Thiago Sevilhano 08 April 2008 (has links)
Esta pesquisa investiga os determinantes e a evolução recente no Brasil do trabalho remunerado feminino exercido no próprio domicílio ou simplesmente trabalho domiciliar. Quase 10% da população feminina ocupada, aproximadamente 4,5 milhões de mulheres, tem esse tipo de ocupação. Constatando a inexistência de estudos sobre o tema com dados quantitativos abrangentes, a presente pesquisa utiliza informações da Pesquisa Nacional por Amostras Domiciliares (PNAD) de 1992 a 2005 para analisar como evoluiu a proporção de trabalhadoras domiciliares no total da população ocupada. As mais importantes hipóteses delineadas na literatura a partir de estudos de caso são discutidas pela confrontação com os dados. Sob a ótica da demanda por essa forma de trabalho, analisa-se os setores que mais fazem uso do trabalho domiciliar feminino e as mudanças nessa composição, bem como sua relação com as transformações no mundo do trabalho decorrentes da reestruturação empresarial. Quanto à oferta por trabalho domiciliar, investiga-se como atributos individuais e familiares afetam as chances da mulher estar nesse tipo de condição de ocupação. É debatido como as transformações na inserção produtiva feminina afetaram a importância relativa do trabalho domiciliar. Constrói-se um modelo Logit Multinomial no Stata a partir dos dados da PNAD para comparar como mudou no tempo o impacto de cada atributo sobre a probabilidade de que uma mulher seja trabalhadora domiciliar. / This research investigates the determinants and recent developments of female home-based work in Brazil. Almost 10% of the occupied female population, approximately 4.5 million women, has this kind of occupation. Noting the lack of studies on the topic with comprehensive quantitative data, the present research uses information from PNAD beginning on 1992 until 2005 to evaluate how the proportion of female home-based workers on occupied population evolved. The most important assumptions outlined in the literature from case studies are discussed by confrontation with the data. From the perspective of demand for this type of work, sectors that intensively use female home-based work are analyzed, as well as its relationship with the changes in the labor market resulting from firms restructuring. On the supply of home-based work, it is investigated how individual and family attributes affect the chances of a woman to be in this work condition. It is discussed how the changes on female\'s productive insertion affected the relative importance of home-based work. A Multinomial Logit model is built on Stata using the data from PNAD to compare how the impacts of each attribute on the probability of a woman being home-based worker changed over time.
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Modeling value of travel time to competitors by different ways logit models: what you win and lose that? / Modelando valor de tempo de viagem para modos concorrentes por diferentes modelos logit: o que se ganha e o que se perde?Francisco Gildemir Ferreira da Silva 13 September 2011 (has links)
CoordenaÃÃo de AperfeiÃoamento de Pessoal de NÃvel Superior / Economists since 1965 search a way to measure the value of time. This paper addresses empirical results from a theoretical background proposed in the particular case of transport. The Tuong and Hensher (1985) paper unified the theory and empirical measurement however, over the years various methods for estimation of discrete choice models were not used to measure the values of travel time. This thesis measures the value of travel time of the intercity transport users in Cearà using four models: unstructured type McFadden and the other three, as proposed in Tuong and Hensher (1985a) (Becker, and DeSerpa and Tuong Hensher via Taylor expansion). Additional to the traditional logit model, it estimates the same models using the methodology developed by Morikawa (1989) and simulated maximum likelihood estimation and Bayesian to logit models like in Train (2003). The result indicates that it should use the estimation methods and different functional forms sparingly, because depending on the parameters obtained can be found values for travel time considerably different. On the other hand, the functional forms can be good for prediction. A choice of estimation methods such as enrichment suggests less distortion from standard model. A choice of functional form indicates the use the model of Becker or DeSerpa because of their small oscillation regardless of the estimation methods used. Already a combined choice of estimation method and functional form suggests Becker or DeSerpa with Simulated Maximum Likelihood estimation to obtain values of travel time and to forecasts. / Economistas desde 1965 debruÃam-se sobre uma forma de como mensurar o valor do tempo. O trabalho de Tuong e Hensher (1985) uniu teoria ao empirismo, entretanto, com o passar dos anos os mÃtodos diversos de estimaÃÃo por modelos de escolha discreta nÃo foram utilizados para a mediÃÃo do valor de tempo de viagem. Esta tese mensura o valor de tempo de viagem dos usuÃrios de transporte intermunicipal no Cearà utilizando de quatro modelos: nÃo estruturado tipo McFadden e os outros trÃs, conforme proposto em Tuong e Hensher (1985a), para Becker, DeSerpa e a proposta de Tuong e Hensher via expansÃo de Taylor. Adicional ao modelo logit tradicional, faz-se estimaÃÃes das mesmas formas funcionais utilizando da metodologia desenvolvida por Morikawa (1989) e depois a de estimaÃÃes de mÃxima verossimilhanÃa simulada e bayesiana para modelo logit com fatores aleatÃrios apresentada em Train (2003). O resultado indica que se devem utilizar os mÃtodos de estimaÃÃo e formas funcionais distintas com parcimÃnia, pois dependendo dos parÃmetros obtidos, podem ser encontrados valores para tempo de viagem consideravelmente diferente. Por outro lado, as formas funcionais podem ser boas para previsÃo tal como discutido acima. Uma escolha entre mÃtodos de estimaÃÃo sugere o enriquecimento como o que menos distorce as estimativas do logit padrÃo. Uma escolha de forma funcional indica o uso do modelo de Becker ou do DeSerpa por conta da sua pequena oscilaÃÃo independentemente dos mÃtodos de estimaÃÃo utilizados. Jà uma escolha combinada entre mÃtodo de estimaÃÃo e forma funcional sugere o modelo de Becker e DeSerpa com MÃxima VerossimilhanÃa Simulada, tanto para obter valores de tempo de viagem como para prever eventos.
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Determinantes de la brecha de género en la inclusión financiera del Perú durante el 2016 / Determinants of the gender gap in the financial inclusion of Peru during 2016Ortiz Huerta, Gonzalo 02 July 2019 (has links)
La presente investigación tiene como objetivo central identificar cuáles son los principales determinantes que influyen en la brecha de género en la inclusión financiera del Perú durante 2016. En tal sentido, se utiliza la Encuesta Nacional de Demanda de Servicios Financieros y Nivel de Cultura Financiera (ENIF, 2016), en la cual se encuestó a 6,303 individuos seleccionados al azar, formando una muestra representativa de todo el Perú, y se realiza la estimación de modelos de elección discreta (logit y probit). Además, se calculan los impactos marginales de las variables socioeconómicas sobre la posesión de cuentas de ahorro y tarjetas de crédito tanto para varones como mujeres. Los resultados muestran que el nivel educativo es la variable que genera un mayor aumento en la probabilidad de acceder al sistema financiero aunque no de manera muy diferenciada entre géneros; mientras que la posesión de activos, relación de parentesco, residencia y estado civil generan impactos menores en el género femenino. / The main objective of this research is to identify the main determinants that influence the gender gap in the financial inclusion of Peru during 2016. In this sense, the National Survey of Demand for Financial Services and Level of Financial Culture (ENIF, 2016) is used, in which 6,303 randomly selected individuals were surveyed, forming a representative sample of Peru. The estimation of discrete choice models (logit and probit) is made. In addition, the marginal impacts of socioeconomic variables on the possession of savings accounts and credit cards for both men and women are calculated. The results show that the educational level is the variable that generates a greater increase in the probability of accessing the financial system although not in a very differentiated way between genders; while the possession of assets, kinship relationship, residence and marital status generate minor impacts on the female gender. / Trabajo de investigación
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Dynamic Demand for New and Used Durable Goods without Physical DepreciationIshihara, Masakazu 31 August 2011 (has links)
This thesis studies the interaction between new and used durable goods without physical depreciation. In product categories such as CDs/DVDs and video games, the competition from used goods markets has been viewed as a serious problem by producers. These products physically depreciate negligibly, but owners'
consumption values could depreciate quickly due to satiation. Consequently, used goods that are almost identical to new goods may become available immediately after a new product release. However, the existence of used goods markets also provides consumers with a selling opportunity. If consumers are forward-looking and account for the future resale value of a product in their buying decision, used goods markets could increase the sales of new goods. Thus, whether used good markets are harmful or beneficial to new-good producers is an empirical question.
To tackle this question, I extend the previous literature in three ways. First, I assemble a new data set from the Japanese video game market. This unique data set includes not only the sales and prices of new and used goods, but also the resale value of used copies, the quantity of used copies retailers purchased from consumers, and the inventory level of used copies at retailers. Second, I develop a structural model of forward-looking consumers that incorporates (i) new and used goods buying decisions, (ii) used goods selling decisions, (iii) consumer expectations about future prices of new and used goods as well as resale values of used goods, and (iv) the depreciation of both owners' and potential buyers' consumption values. Third, I develop a new Bayesian estimation method to estimate my model. In particular, my method can alleviate the
computational burden of estimating non-stationary discrete choice dynamic programming models with continuous state variables that evolve stochastically over time.
The estimation results suggest that consumers are forward-looking in the Japanese video game market and the substitutability between new and used video games is quite low. Using the estimates, I quantify the impact of eliminating the used video game market on new-game revenues. I find that the elimination of used video game market could reduce the revenue for a new game.
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