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  • June 2013
  • Article
  • Economics Letters

Vacancies in Supply Chain Networks

By: John William Hatfield and Scott Duke Kominers
  • Format:Print
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Abstract

We use the supply chain matching framework to study the effects of firm exit. We show that the exit of an initial supplier or end consumer has monotonic effects on the welfare of initial suppliers and end consumers but may simultaneously have positive and negative effects on intermediaries. Furthermore, we demonstrate that there are no clear comparative statics for the effects of intermediary exit on the welfare of other firms; most surprisingly, intermediary exit may diminish the welfare of other firms at the same level of the supply chain.

Keywords

Matching; Networks; Stability; Vacancy Chains; Market Entry and Exit; Supply Chain

Citation

Hatfield, John William, and Scott Duke Kominers. "Vacancies in Supply Chain Networks." Economics Letters 119, no. 3 (June 2013): 354–357.

About The Author

Scott Duke Kominers

Entrepreneurial Management
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