This article develops a supply chain coordination model with a single-vendor and a single-buyer. The vendor manufactures the product in lots and delivers to the buyer in equal shipments. However, the vendor’s production process is not perfectly reliable. During a production run, the process may shift from an in-control state to an out-ofcontrol state at any random time and produces some defecti...

Our research proposes a simple game model that captures the incentives dictating the interaction between buyers and sellers and reveals the strategies that evolve in different scenarios, such as eBay auctions. In particular, we find seller history has a significant effect on player strategy. We prove that for simple reputation-based buyer strategies, a seller’s decision whether to cheat or not ...

This paper discusses a fundamental market failure regarding environmental conservation, and how the problem can be solved by appropriate policies. A "seller" (or owner of a tropical forest) may be motivated to conserve if a "buyer" is expected to pay. The buyer, however, does not find it necessary to pay as long as the seller conserves in any case. This contradiction implies that the forest wil...

In the recent years, companies have begun to strengthen their supply agreements, such as sharing the management of inventories. This type of cooperation implies that the members of the supply chain share information and arrange a mutual agreement on their performance targets. The increased interest on supply chain topics has attracted researchers’ attention to the problem of co-operation betwee...

We study a multi-period bargaining mechanism in which a seller negotiates with a buyer over the price of an indivisible good. It is common knowledge that the good has zero value to the seller. Its value to the buyer is privately known, distributed independently of the seller's value according to a distribution that is common knowledge. Bargaining proceeds as follows. The seller sets a price and...

A buyer wishes to purchase a good from a seller who chooses a sequence of prices over time. Each period the buyer can also exercise an outside option, abandoning their search or moving on to another seller. We show there is a unique equilibrium in which the seller charges a constant price in every period equal to the monopoly price, contravening the Coase conjecture. We then embed the singlesel...

This paper analyzes the effects of buyer search costs and incomplete information, private and common knowledge of the sellers, on seller competition. It turns out that small changes in search costs may have large but quantifiable effects on pricing when the seller has good private knowledge about the buyer, but the common knowledge of the buyer valuations is lacking among the sellers. As an app...

Abstract This paper studies matching markets in the presence of middlemen. In our framework, a buyer–seller pair may either trade directly or use services middleman; and middleman serve multiple pairs. For each such market, we examine associated TU game. We first show that, context, an optimal can be obtained by considering two-sided assignment market where is allowed to mediation any free char...

In this paper, an inventory model for two-stage supply chain is investigated. A supply chain with single vendor and single buyer is considered. We assume that shortage as a backorder is allowed for the buyer and the vendor makes the production set up every time the buyer places an order and supplies on a lot for lot basis. With these assumptions, the joint economic lot size model is introduced ...

BBbk Dummy variable for each bean type (k) and buyer (b) combination (k = 1,b = 1 base case) BSsk Dummy variable for each bean type (k) and seller (s) combination (k = 1, s = 1 base case) TVmk Overall coffee export volume during month m (kilo tons) DFm Fraction of coffee export volume traded on the digital platform during month m Zbd, Zsd Indicator variable set to 1 if buyer b (seller s) had a ...