Contingency Management under Asymmetric Information

Publication Type

Journal Article

Publication Date

11-2005

Abstract

We model a monopolist supplier whose supply to multiple buyers is disrupted. The supplier can take costly, speed-dependent actions, to restore supply. Buyers experience private backorder costs that are unknown to the supplier. We analyze the supplier's optimal contract structure and explore the impact of an alternate supplier.

Discipline

Management Sciences and Quantitative Methods

Research Areas

Operations Management

Publication

Operations Research Letters

Volume

33

Issue

6

First Page

572

Last Page

580

ISSN

0167-6377

Identifier

10.1016/j.orl.2004.11.007

Publisher

Elsevier

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