We study the supplier relationship choice for a buyer that invests in transferable capacity operated by a supplier. With a long-term relationship, the buyer commits to source from a supplier over a long period of time. With a short-term relationship, the buyer leaves open the option of switching to a new supplier in the future. The buyer has incomplete information about a supplier’s efficiency,...

This note addresses scenarios of buyers purchasing rate along paths in a nonhierarchical communication network. A sum bid game is proposed in which each buyer submits a bid, also equal to a payment, and the network allocates rate in a weighted proportionally fair fashion, with the bids as the weights. This is in contrast to an itemized bid game, considered recently by Johari and Tsitsiklis, und...

The Digital watermarking technology has become increasing popular in the protection digital copyright. However, in the practical application, the watermarking algorithms should be combined with a secure copyright protection protocol to solve the copyright protection problems completely. In this paper, a novel buyer-seller watermarking protocol is proposed for piracy tracing, in which a memoryle...

Research on trust in buyer–supplier relationships has tended to focus on the performance outcomes of a trusting relationship, as well as the processes that serve to build trust. Largely absent from the buyer–supplier literature is an in-depth examination of activities that break down trust, and the resulting effect on supplier trust in the buyer. The authors propose and test amodel that evaluat...

We analyze the implications of the buyer’s strategic power in the model of dynamic price competition. Two sellers with a limited inventory sell to a single buyer, who has unit for in each of several time periods. The market power of the sellers is offset by the strategic power of the buyer. By not consuming in any period, the buyer can destroy a unit of demand, thereby intensifying future price...

Under the optimal scheme identified in Theorem 2, the response by each buyer moves in the direction of the response dominant among their predecessors. In other words, a buyer accepts with a higher probability than his predecessor when most buyers before him have chosen to accept, and rejects with a higher probability when most buyers before him have chosen to reject. Formally, the following pro...

This paper presents a critique of the normative, buyer-supplier literature and in addition suggests that the more empirically-based literature needs to expand its scope of attention beyond its traditional confines of attention. Four main deficiencies are identified within much of the existing buyer-supplier literature. Firstly, collaborative buyer-supplier theories fail to discriminate sufficie...

We developed a game-theoretic approach concerning the option pricing validity and tractability of which is ascertained by deriving the Black-Scholes formula. We also applied this approach to the welfare implications of the bailout policy. It is found that such a policy always worsens the economic welfare. This is because of the moral hazardous behavior of the buyer owing to the limited liabilit...