information asymmetry and conflicts of interest between management and shareholders lead to the phenomenon of moral hazard. moral hazard means that the managers may make some decisions (e.g. investment decisions) that do not meet the interests of shareholders. inefficient investment decisions include over or under-investment in firms’ labor and utilize the non-optimal number of human resources ...

T paper studies a queuing model in which a buyer sources a good or service from a single supplier chosen from a pool of suppliers. The buyer seeks to minimize the sum of her procurement and operating costs, the latter of which depends on the supplier’s lead time. The selected supplier can regulate his lead time, but faster lead times are costly. Although the buyer selects the supplier to source...

This paper studies a monopoly pricing problem in a situation where the firm has uncertainty about the buyers’ preferences. We examine continuous learning dynamics, where the firm sells some quality-price bundles and adjusts them using only local information about the buyers’ preferences. The learning dynamics define different learning paths, and we compute how much profit the paths make, how lo...

The aim of this paper is the evaluation overall performance of buyer-supplier relationships.In some situations the cost of inputs in a buyer-supplier chain are available, on the other hand, achieving a low cost position is necessary for most businesses. And, in a buyer-supplier chain wants to know how assign inputs with the least cost. This paper introduces cost efficiency with same and dierent...

The proposed study addresses a two-echelon sustainable supply chain (SC) model with single-vendor and single-buyer by considering the detrimental impacts of environmental pollution due to production. Moreover, an estimation function measure production is developed through separate modelling. In entire chain, we assume deterioration rate increases time it also depends on product’s expiration dat...

We study a two person bargaining problem in which the buyer may invest and increase his valuation of the object before bargaining. We show that if all offers are made by the seller and the time between offers is small, then the buyer invests efficiently and the seller extracts all of the surplus. Hence, bargaining with frequently repeated offers remedies the hold-up problem even when the agent ...

Current digital currency schemes provide instantaneous exchange on precise commodity, in which ”precise” means a buyer can possibly verify the function of the commodity without error. However, imprecise commodities, e.g. statistical data, with error existing are abundant in digital world. Existing digital currency schemes do not offer a mechanism to help the buyer for payment decision on precis...

working papers are produced by the Bradford University School of Management and are to be circulated for discussion purposes only. Their contents should be considered to be preliminary. The papers are expected to be published in due course, in a revised form and should not be quoted without the author's permission. The literature offers numerous motives for extending trade credit. A major econo...

This paper tackles the problem of irreversible investment and price negotiation under Knightian uncertainty using the real options lens. We present a multiple-priors based formulation of utility in continuous-time that permits a distinction between risk and uncertainty in decision-making to study the impact of vagueness/ambiguity on bilateral price negotiation and investment. Specifically, we e...