Regulators and the firms they regulate interact repeatedly. Over the course of these interactions, the regulator collects data that contains information about the firm’s invariant private characteristics. This paper studies the case in which the regulator uses information gleaned from past cost observations when designing the current period’s contract (that is, contracts are short-term). When c...

This paper studies, theoretically and empirically, how entrepreneurs, heterogeneous in how much they are able to contribute to a joint business, organize in partnerships. The theoretical part demonstrates that, for a wide range of economically plausible production technologies, (i) moral hazard and / or budget balancing, both common in joint production, have no impact on the structure of such e...

There are many materials for which the quantity needed by a firm is at best indirectly related to the quantity of final product produced by that firm, such as solvents in manufacturing processes or office supplies. For any such “indirect” materials, an inescapable incentive conflict exists: The buyer wishes to minimize consumption of these indirect materials, while the supplier’s profits depend...

This paper examines the efficiency of expectation damages as a breach remedy in a bilateral trade setting with renegotiation and relationship-specific investment by the buyer and the seller. As demonstrated by Edlin and Reichelstein (1996), no contract that specifies only a fixed quantity and a fixed per-unit price can induce efficient investment if marginal cost is constant and deterministic. ...

Bunker fuel constitutes about three quarters of the operational costs for liners. A strong effort is justified to define operational conditions and management strategies to minimize fuel-related costs, especially if the variability of fuel price is considered. Fuel sellers and liners use contracts to be guaranteed a refuelling quantity and control bunker price. We propose a game theory based ap...

This paper studies the statistical errors for the fingerprint-based RADAR neighbor matching localization with the linearly calibrated reference points (RPs) in logarithmic received signal strength (RSS) varying Wi-Fi environment. To the best of our knowledge, little comprehensive analysis work has appeared on the error performance of neighbor matching localization with respect to the deployment...

We consider a supply chain in which a producer supplies a fresh product, through a third-party logistics (3PL) provider, to a distant market where a distributor purchases and sells it to end customers. The product is perishable, both the quantity and quality of which may deteriorate during the process of transportation. The market demand is random, sensitive to the selling price as well as the ...

This study investigates a supply chain of fresh produce with consideration option contracts and where stochastic market demand depends on freshness-keeping effort. Firstly, we investigate benchmark scenario an integrated freshness effort decreases in both the quality quantity while chain. Secondly, introduce call, put, bidirectional to mitigate risks retailer. A call contract can reduce underag...

Shows equilibrium always exists (Rothschild-Stiglitz-Wilson model) when firms enforce policy exclusivity via strategic (profit-maximizing) communication of client purchases. Strategic communication induces two equilibrium types: partial communication of purchase information or non-communication which exhibits a lemon effect (low-risk purchase no insurance). Nonetheless, Jaynes' configuration (J...