Anat Bracha, Michael Menietti, and Lise Vesterlund Abstract: The public phase of a capital campaign is typically launched with the announcement of a large seed donation. Andreoni (1998) argues that such a fundraising strategy may be particularly effective when funds are being raised for projects that have fixed production costs. The reason is that the introduction of fixed costs may give rise...

In a model where two competing downstream firms establish an input joint venture (JV), we analyze how different royalty rules for covering fixed costs affect channel profits. Under running royalties (regardless of whether based on predicted or actual output), the downstream firms’ perceived marginal costs are above the true marginal costs since fixed costs are incorporated. We find that tougher...

The cooperation strategy followed by the buyer and vendor results is an overall effect on the saving percentage along with the impact of inventory costs such as holding cost, fixed and linear backorder cost. This paper deals with buyer vendor incentive inventory model with fixed lifetime product with fixed and linear back order cost. A distinguishing feature of this model is that both fixed and...