Cooperation between upstream suppliers and downstream manufacturers in technology investment is a popular way to improve production for reducing suppliers’ costs of key components. The cooperation strategies are mainly influenced by manufacturers’ investments wholesale price discount contracts provided suppliers. This paper explores whether supplier should cooperate with two competing accept th...

This paper discusses two ways to amend the optimal lending contract under asymmetric information studied in Clementi and Hopenhayn (2006) to change its long-run implications so that firm growth and exit driven by borrowing constraints exist in the long run. One way assumes that the entrepreneur has a lower discount factor than the bank, and the other assumes the bank has limited commitment. The...

We introduce a composite (CP) contract for a two-stage supply chain by organically combining two component contracts: a buy back (BB) contract and a quantity flexibility (QF) contract. The CP contract is shown to have advantages over both component contracts in terms of supply chain coordination, profit allocation, and risk allocation. In particular, we obtain the following results: (a) as long...

Vendor selection decisions are complicated by the fact that various conflicting multi-objective factors must be considered in the decision making process. The problem of vendor selection becomes still more compli-cated with the inclusion of incremental discount pricing schedule. Such hard combinatorial problems when solved using meta heuristics produce near optimal solutions. This paper propose...

This dissertation consists of three chapters in Industrial Economics. Chapter 1 is the product of joint work with Filippo Balestrieri. In chapter 1 we examine the use of lotteries among horizontal differentiated goods as a mechanism to price discriminate consumers. We use the linear city model to represent a market with two differentiated goods. We show that the optimal selling strategy for a m...

Purpose The authors investigate the manufacturer's choice of discount schemes in a supply chain with competing retailers. Design/methodology/approach Using game-theoretic model, build two frameworks and compare analyze effects different on performance members. Findings find that retail price (market demand) quantity scheme is always higher (lower) than market share scheme. also retailers' prefe...