A large body of theoretical work has explored the channels through which vertical contracts can induce efficiency improvements. However, it is also important to study vertical contracts empirically in order to gain insight into the relative size of different types of efficiency gains. In this paper, I empirically analyse a contractual innovation in the vertically separated video rental industry...

We describe research on a supply chain contracting problem that was sponsored by a major semi-conductor manufacturer. The manufacturer sells products (semiconductor parts) with varying quality levels through a network of distributors to end consumers (independent computer shops, system configurators, hobbyists, etc.) who have heterogeneous valuations for quality. Since production costs for semi...

M emerging technologies exhibit path-dependent demands driven by positive network feedback. Such network effects profoundly impact marketing strategists’ thinking in today’s network economy. However, the significant network externalities expected by many people often fail to materialize in the emerging technology market. We analyze this phenomenon in the context of a technology distribution cha...

Using data on mobile phone handset sales from a single retail store, we examine the impact of different retail responsibility designations and vertical contracts on seller service provision, firm profitability, and social welfare. During our sample, this store switched from retailer-managed retailing with linear pricing contracts to manufacturermanaged retailing with revenue sharing. We estimat...

A revenue sharing contract is one of the mechanisms that coordinate decision makers in a decentralized supply chain toward the consensual goal. The transfer prices between different echelons in the supply chain influence the total supply chain profits. The study aims to explore various transfer pricing heuristics on the supply chain coordination in terms of the supply chain profits and their in...

Since the tax of carbon emission is popular and consumers are exhibiting low-carbon preference, green manufactures have to spend more extra cost on investing reduction (CER) technology decrease emission. To encourage manufacture’s CER investment efforts, this paper explores impact tax, cost, consumers’ preference decision-making designs a revenue-sharing contract (RS) by constructing Stackelber...

We analyze a firm designing and selling a seasonal product with demand uncertainty and a single ordering opportunity. Prior to the start of the selling season, product quality and inventory must be jointly determined; a higher quality product results in a greater selling price but also greater marginal production cost. We consider both a centralized supply chain, in which a single firm determin...

We consider a decentralized two-period supply chain in which a manufacturer produces a product and sells it through a retailer facing a price-dependent demand. We assume that the secondperiod production cost declines linearly in the first-period production, but with a random learning rate. As the mean and/or the standard deviation of the learning rate increase, the traditional double marginaliz...

The purpose of this study is to explore the design equity cooperation mechanism in sharing logistics service supply chain. This designs a two-echelon chain composed an urban joint distribution company and N companies. jointly established by companies based on specific shares investment. We establish models under revenue-sharing or cost-sharing contracts. Revenue-sharing factor parameter. When m...

Intelligent transformation of manufacturers requires smart logistics collaboration, which improves competitiveness. In this study, we construct a Stackelberg game model based on the mutual influence and restriction in relationship between manufacturer service provider (LSP) undergoing transformation. We investigate whether cost-sharing (CS) or revenue-sharing (RS) contracts can coordinate suppl...