C with suppliers prone to default is an increasingly common problem in some industries, particularly automotive manufacturing. We model this phenomenon as a two-period contracting game with two identical suppliers, a single buyer, deterministic demand, and uncertain production costs. The suppliers are distressed at the start of the game and do not have access to external sources of capital; hen...

Inspired by real-time ad exchanges for online display advertising, we consider the problem of inferring a buyer’s value distribution for a good when the buyer is repeatedly interacting with a seller through a posted-price mechanism. We model the buyer as a strategic agent, whose goal is to maximize her long-term surplus, and we are interested in mechanisms that maximize the seller’s long-term r...

Trust is vital for market development, but how can trust be enhanced in an online marketplace? A common view is that more trusting of buyers may help to build seller trustworthiness. This paper highlights a possibility that encouraging buyer trusting may lower seller trustworthiness in equilibrium. In particular, we set up a rational expectation model in which a marketplace uses buyer protectio...

A buyer facing two spatially-separated sellers can negotiate with only one potential seller at a time. However, with some delay, the buyer can move back and forth between the two sellers. The introduction of behavioral types, even with low probabilities, makes the equilibrium of the resulting multilateral bargaining problem essentially unique. The equilibrium has a war of attrition structure. T...

This paper focuses on strategic information flows between buyers and suppliers within logistics supply chain relationships and on subsequent relationship-specific performance outcomes. Our analysis of dyadic data collected from 91 buyer–supplier logistics relationships finds that buyer and supplier strategic information flows positively impact the relationship-specific performance of both shari...

This paper presents a model of cooperative technology development undertaken by a buyer and a supplier of capital equipment in the semiconductor industry. In order to meet the demanding technical requirements of their production processes, chip producers, the "buyers," often spearhead technology development projects with their equipment suppliers to advance the processing capabilities of their ...