In this paper we explore whether an auctioneer/buyer may benefit from introducing his transformability relationships (some goods can be transformed into others at a transformation cost) into multi-unit combinatorial reverse auctions. Thus, we quantitatively assess the potential savings the auctioneer/buyer may obtain with respect to combinatorial reverse auctions that do not consider tranformab...

This paper aims to enable the decision maker of an integrated vendor–buyer system, under Consignment Stock (CS) policy, to make the optimal/sub-optimal production/replenishment decisions where the buyer places a space limitation to the vendor and the lead-time is controllable with an extra investment. Within any production cycle, the vendor produces at a finite rate and ships the outputs to the...

This paper studies ex-ante investment incentives of a buyer (a content provider) facing a monopoly input seller (an internet service provider), who employs second-degree price discrimination. As a benchmark, we extend an adverse-selection model by a noncontractible investment stage, which allows the buyer to improve her type. The buyer underinvests due to partial rent extraction by the seller. ...

For products sold with a warranty, preventive maintenance (PM) actions by either the manufacturer and/or the buyer has an impact on the total cost for both parties. In this investigation, we use a model to study the effect of PM carried out by the buyer on non-repairable items sold under a free replacement renewing warranty, and a penalty will be incurred by the buyer if the item fails before t...

This paper explores the interplay between choice of investment type (speci…c vs. general), bargaining extensive form and endogenous outside options in the framework of incomplete contracts introduced formally in the work of Grossman, Hart and Moore. We …nd that the bargaining procedure chosen has signi…cant implications for choice of investment and for the usefulness of the assignment of proper...