Production coordination is a common phenomenon in supply chains. Unlike the existing literature, we examine the production coordination problem from the perspective of asymmetric information: how a manufacturer (leading firm) coordinates the relationships with its subsidiary firm(s) and, subsequently, how market returns influence the leading firm's expected utilities, agency cost and the subsid...

A. Francis, O. Kaczmarek, M. Laine, T. Neuhaus, and H. Ohno Department of Physics and Astronomy, York University, Toronto, Ontario M3J1P3, Canada Faculty of Physics, University of Bielefeld, 33501 Bielefeld, Germany ITP, AEC, University of Bern, Sidlerstrasse 5, 3012 Bern, Switzerland Helsinki Institute of Physics, P.O. Box 64, 00014 University of Helsinki, Finland Institute for Advanced Simula...