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Relationship-Specific Investment and Hold-Up Problems in Supply Chains: Theory and Experiments
Supply chains today routinely use third parties for many strategic activities, such as manufacturing, R&D, or software development. These activities often include relationship-specific investment on the part of the vendor, ...
Sourcing Contract under Countervailing Incentives
We study a retailer’s sourcing contract when the supplier’s reservation profit (offered by his outside options) depends on his cost, which is privately known to only the supplier. An interesting discovery from our analysis ...
Advance Selling in the Presence of Market Power and Risk-Averse Consumers
We consider a manufacturer who procures raw material through a long-term contract as well as in a spot market to produce goods for selling to consumers, a fraction of whom are risk averse. We assume that the manufacturer ...