• Michael Kremer


Rates of Return, Optimization Failures, and Loss Aversion: Evidence from Kenyan Retail Shops. Michael Kremer, September 1, 2014, Paper. "Using administrative data on whether Kenyan retailers take advantage of quantity discounts from wholesalers and survey data on lost sales due to stockouts, we estimate lower bounds of two particular forms of inventory investment for many Kenyan shops. We then confirm that inventories are strongly associated with self-reported profits across shops, and that shopkeepers report substantial losses from inadequate inventories..." Link