Contingency Management under Asymmetric Information
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.
Management Sciences and Quantitative Methods
Operations Research Letters
Iyer, Ananth; Deshpande, Vinayak; and Wu, Zhengping.
Contingency Management under Asymmetric Information. (2005). Operations Research Letters. 33, (6), 572-580. Research Collection Lee Kong Chian School Of Business.
Available at: http://ink.library.smu.edu.sg/lkcsb_research/2275