Industrial buyers often create cost models to estimate the costs of potential suppliers and use the information to negotiate an attractive price with suppliers. However, in settings where the buyer wishes to negotiate a contract price by soliciting competitive bids from multiple suppliers, the benefit of cost modeling is not clear since the bidding competition among suppliers can itself reveal ...

The face of customer relationship management has shifted as business partners on both sides of the relationship deploy technology to better manage relationships, streamline business processes and achieve integration. The phenomenon of captive buyer and supplier relationships grounded in substantial unilateral monetary and organizational investments in achieving business objectives contrast with...

Proof. (i) In a short-term contract, prices must be subgame perfect. Thus, it is easy to see that in the second period the buyer will o¤er the lowest prices that satisfy the participation constraints of the suppliers, i.e., p22 = 2 (c1) + d (d1) for supplier 2 and p s 12 = d1 + 2 (c1) for supplier 1 (since d1 is known at the end of the …rst period). Recalling that the buyer must also incur a pe...

Although it has been widely accepted that insertion into global production networks may play a critical role in fostering local supplier upgrading, scholars have yet to fully incorporate heterogeneous configurations of buyer-supplier relationships within networks into empirical testing. Using a representative sample of manufacturing firms in Thailand, we propose a more nuanced empirical framewo...

Supplier selection is one of the most critical activities of purchasing management in supply chain and managers increasingly face sourcing decisions of how to selected suppliers. This paper illustrates the development of a sourcing decision that provides support for the buyer firm in supply chain.The models developed here, involved selecting between single and dual sourcing. Outside and local s...

In a buyer-supplier game, a special type of assignment game, a distinguished player, called the buyer, wishes to purchase some combinatorial structure. A set of players, called suppliers, offer various components of the structure for sale. Any combinatorial minimization problem can be transformed into a buyer-supplier game. While most previous work has been concerned with characterizing the cor...

buyer commitment to an exchange relation is a key issue in industrial marketing. commitment to an exchange has several benefits for buyer and seller such as increasing exchange efficiency, decreasing exchange cost and uncertainty. this article investigates commitment in b2b relationships from perspective of purchasing department managers. in the present study the satisfaction effects of purchas...

In supply chain co-opetition, firms simultaneously compete and co-operate in order to maximize their profits. We consider the nature of co-opetition between two firms: The product supplier invests in the technology to improve quality, and the purchasing firm (buyer) invests in selling effort to develop the market for the product before uncertainty in demand is resolved. We consider three differ...

This paper examines a symmetric first-price procurement auction in which one supplier is preferred by the buyer. Preference takes the form of a right-of-first-refusal which allows the preferred supplier to accept or reject the contract at the lowest bid of the other competing suppliers. We first characterize a strictly monotonic bidding function for the competing suppliers. We then show that th...