This article aims to use a bargaining power model reduce moral hazard—in the form of entrepreneurial effort shirking—and derive an optimum sharing ratio Profit and Loss Sharing (PLS) contract that involves Venture Capitalist Entrepreneur. The reveals following interesting findings. First, under complete information—where has - offers entrepreneur profit is less than her capital contribution rat...

This paper looks at the outsourcing of research and development (R&D) activities. We consider cost reducing R&D and allow manufacturing firms to decide whether to outsource the project to research subcontractors or carry out the research in-house. We use a principal-agent framework and consider fixed and revenue-sharing contracts. We solve for the optimal contract under these constraints. We fi...

In this paper we focus on the coordination of multiagents through a revenue-cost-sharing mechanism. We consider a grand-coalition consisting of finite agents, who undertake part of the costs individually, while the remaining costs C and the total revenues R are shared between them with a revenue-cost-sharing contract. We introduce a novel approach in the form of a cooperative game for a finite ...

Our paper provides an explanation why cost-of-living adjustment (COLA) provisions and their characteristics vary widely across U.S. industries. We develop models of optimal risk sharing between a firm and union to investigate the determinants of a number of contract characteristics. These include the presence and degree of wage indexing, the magnitude of deferred noncontingent wage increases, c...

by considering the competitive advantages of takaful over conventional insurances, such as sharing the underwriting profit (surplus) and return of investment, an investigation into and providing the takaful model based on shiite jurisprudence is necessary and unavoidable. accordingly, with a survey of the legal structure of conventional takaful and identification of its problems according to im...

This paper studies a supply chain coordinated by a revenue-sharing contract in fuzzy environment. Two kinds of fuzzy programming models are discussed: revenue-sharing contract with fuzzy linear demand model and fuzzy iso-price-elastic demand model. Supply chain coordination in both centralized decision setting and centralized decision setting are achieved by obtaining the optimal solutions in t...

In this paper, a socially responsible supply chain consisting of one supplier and one retailer is proposed. The supplier decides on replenishment cycle multiplier and the retailer invests in corporate social responsibility (CSR) and decides on the order-up-to-level under a periodic review replenishment policy. The retailer’s decisions impact on the supplier’s probability as well as the supply c...

Considering a fresh supply chain consisting of one supplier and retailer, this paper studies the pricing coordination under altruistic fairness concern supplier. Based on centralized decision Stackelberg game theory, decentralized model supplier’s is constructed, analyzed, cost-sharing contract based designed for coordination. The results show that can inspire retailer to improve freshness-keep...