Abstract This study is designed to solve supply chain inefficiencies caused by some members' financial problems, such as capital shortages and financing restrictions in a stochastic environment. To this end, we have established finance framework designing two novel coordinating contracts based on trade credit for different problem settings. These are modeled the form of multi-leader Stackelberg...

Industrial buyer-seller relationships are frequently characterized by the fact that the seller and/or the buyer have to dedicate specific up-front investments to the relationship. Marketing research analyzes these relationships on the basis of Transaction Cost Economics (TCE). TCE highlights the risk of hold-up which arises after specific investments are dedicated. However, exogenous uncertaint...

A group of players which contain n sellers and n buyers bargain over the partitions of n pies. A seller (/buyer) has to reach an agreement with a buyer (/seller) on the division of a pie. The players bargain in a system like the stock market: each seller(buyer) can either offer a selling(buying) price to all buyers(sellers) or accept a price offered by another buyer(seller). The offered prices ...

In this paper, we study an outsourced supply chain consisting of one buyer and two suppliers in which the buyer outsources manufacturing of a physical product to two competing suppliers. The suppliers compete for the buyers' demands share, and the buyer allocates the demands to the competing suppliers based on three-dimensional allocation functions. We consider two certain types of allocation f...

I introduce a strategic seller to a standard model of real options. A privately informed seller, such as a startup, tries to court a forward-looking buyer, such as a venture capitalist. The buyer learns gradually about the seller’s quality, high or low, through exogenous news and can “adopt” the seller at any time. The seller pays a flow cost but can exit or privately upgrade its quality at any...

The explosive growth of eBusiness has allowed many companies to accumulate a repertoire of rich and unique datasets that can provide substantial value to other firms. Monetizing this data is a growing source of revenue to the data owners — one that can generate millions of dollars each year. The value of the data to a potential buyer is usually uncertain to both parties, and a mutually acceptab...

In the global supply chain where there is a time lag between arrival of the shipment and the sale, the purchase price to the buyer may, on the day of settlement be different from that on the day of the order if the buyer is to pay in the supplier’s currency. Either the supplier or the buyer is exposed to the loss due to exchange rate fluctuations. The key questions that arise then are: Does it ...

We study the relationship between bargaining and competition with incomplete information. We consider a model with two uninformed and identical buyers and two sellers. One of the sellers has a privately-known reservation price, which can either be Low or High. The other seller’s reservation price is commonly known to be in between the Low and High values of the privately-informed seller. Buyers...

We discuss a quantity discount problem between a seller (wholesaler) and a buyer (retailer). The seller purchases products from an upper-leveled supplier (manufacturer) and then sells them to the buyer who faces her/his customers’ demand. The seller attempts to increase her/his profit by controlling the buyer’s order quantity through a quantity discount strategy and the buyer tries to maximize ...

Online Auction Demand Online auctions represent a sizable and growing sector of the retail economy. As a result, there has been a proliferation in auctions research in recent years. However, few empirical papers consider the role of the seller in shaping the demand for auctions, a point we seek to redress. Sellers are an important component of the auctions environment because their listing beha...