When the seller of an asset grants a right-of-first-refusal to a buyer, this special buyer has the opportunity to purchase the asset at the best price the seller can obtain from the other potential buyers. We show that the right-of-first-refusal is inefficient, and it benefits the special buyer at the expense of the seller and other buyers. In a private values model, the benefit from granting a...

In this paper, several seller–buyer supply chain models are proposed which incorporate both cost factors as well as elements of competition and cooperation between seller and buyer. We assume that unit marketing expenditure and unit price charged by the buyer influence the demand of the product being sold. The relationships between seller and buyer will be modeled by non-cooperative and coopera...

A well functioning reputation and feedback system is foundational in consumer-to-consumer electronic commerce, an example of which is the electronic auction. Our interest in this paper is the analysis of the predictive power of both buyer and seller comments in determining the resolvability of transaction disputes in online auctions. Using data gathered from the eBay, Inc. reputation system, we...

The role of culture in the development of international buyer/seller relationships has attracted the attention of academics and practitioners in marketing and management (for example, Adler 1997; Dabholkar, Johnston & Cathey 1994; Hofstede 1994; Soutar, Grainger & Hedges 1999). This paper examines the role of national culture and stereotyping in the development of a potential buyer/seller relat...

We consider a mechanism design problem for energy procurement, when there is one buyer and one seller, and the buyer is the mechanism designer. The seller can generate energy from conventional (deterministic) and renewable (random) plants, and has multi-dimensional private information which determines her production cost. The objective is to maximize the buyer’s utility under the constraint tha...

Consider a bilateral trading market where there is one potential buyer and one potential seller of an object. The value that the buyer and seller place on the object depends on the product’s quality, . In particular, assume the value to the buyer is vB and the value to the seller is vS : Assume that the quality of the good is uniformly distributed between 0 and 1, U [0; 1]: Tomake the problem i...

This study proposes and validates a trust measurement model for buyer-seller relationships. Baptized as development-based trust, the model encompasses three dimensions of trust: calculus-based, knowledge-based and identification-based. In addition to recognizing that trust is a multidimensional construct, the model also assumes that trust can evolve to take on a different character depending on...

This study will examine the conflict and dissolution strategies of interorganizational buyer-relationships. Prior to the discussion on more detailed objectives, the background of the study will be presented. This background will examine the complexity of buyerseller relationships for firms dealing with different cultures and the impact that this may have for managing conflict and tension in rel...

We study the relationship between bargaining and competition with incomplete information. We consider a model with two uninformed and identical buyers and two sellers. One of the sellers has a privately-known reservation price, which can either be Low or High. The other seller’s reservation price is commonly known to be in between the Low and High values of the privately-informed seller. Buyers...