We develop a model of contracting in which individual effort choices are subject to social pressure to conform to the average effort level of others in the same risk‐sharing group. As in related models of social interactions, a change in exogenous variables or contract terms generates a social multiplier. In this environment, small differences in fundamentals such as skill or effort cost can le...

This article examines the development of profitor revenue-sharing contracts in the motion picture industry. Contrary to much popular belief, such contracts have been in use since the start of the studio era. However, early contracts differed from those seen today. The evolution of the current contract is traced, and evidence regarding the increased use of sharing contracts after 1948 is examine...

Die Verfügbarkeit geeigneter Bezahlfunktionalität ist eine wichtige Voraussetzung für den betriebswirtschaftlichen Erfolg von Mobile Commerce Angeboten im B2C-Bereich. Mehrwertdienste sind die wichtigste Teilmenge des B2C Mobile Commerce und bestehen aus einer Kombination von Inhalt und Transportleistung. Ihre Bezahlung erfolgt typischerweise über die Abrechnung von Telekommunikationsdienstleis...

A key feature of social media is that it allows individuals and businesses to contribute contents for public viewing. However, little is known about how content providers derive payoffs from such activities. In this study, we build a dynamic structural model to recover the utility function for content providers. Our model distinguishes short-term payoffs based on ad revenue sharing from long-te...

A so-called "incentive contract" is a linear payment schedule, where the buyer pays a fixed fee plus some proportion of audited project cost. That remaining proportion of project cost borne by the seller is called the "sharing ratio." A higher sharing ratio creates more incentive to reduce costs. But it also makes the agent bear more cost uncertainty, requiring as compensation a greater fixed f...

In this paper, we develop a revenue management model for airline alliances. In particular, our model allows the members of the alliance to decide how to share the revenues from itineraries spanning flight legs operated by multiple airlines and how to coordinate their capacity allocation decisions. We start with a deterministic linear programming approximation to the revenue management problem t...

This paper investigates pricing and ordering as well as advertising coordination issues in a single-manufacturer single-retailer supply chain, where the manufacturer sells a newsvendor-type product through the retailer who faces a stochastic demand depending on both retail price and advertising expenditure. Under the assumption that the market demand has a multiplicative functional form, the St...