Studies on information sharing in oligopolies focus either Cournot or Bertrand markets. We consider a Cournot–Bertrand market where owners provide strategic managerial incentives and can share the details of their compensation contracts. find that firm punishes its manager for sales, whereas rewards sales. Both firms contract if firms' products are sufficiently differentiated. However, product ...

T paper studies the impact of strategic customer behavior on supply chain performance. We start with a newsvendor seller facing forward-looking customers. The seller initially charges a regular price but may salvage the leftover inventory at a lower salvage price after random demand is realized. Customers anticipate future sales and choose purchase timing to maximize their expected surplus. We ...

We present an empirical framework to analyze real-world salesforce compensation schemes, and report on a multi-million dollar, multiyear project involving a large contact lens manufacturer at the US, where the model was used to improve sales-force contracts. The model is built on agency theory, and solved using numerical dynamic programming techniques. The model is flexible enough to handle quo...

Motivated by frequently repeated activities of negotiating similar sales contracts and inadequate studies of business-tobusiness (B2B) negotiation processes, we formulate a meta-model of e-Negotiation based on a practical meta-model for eContract template and template variables to allow flexible support for a variety of negotiation processes. Based on our metamodels, we develop an effective imp...

The rate of cost pass-through exceeds 50% under strategic delegation of decision-making to managers with sales revenue contracts— regardless of the number of …rms in the industry and demand curvature. This contrasts sharply with pro…t-maximization, for which cost pass-through can take on any positive value. The key intuition is that …rms under delegation act as if they faced more rivals than th...

Retail price and promotional effort are two important parameters on which demand of a commodity largely depends. This paper develops and analyzes a two-echelon supply chain where market demand depends on both retail price and sales effort. The centralized model is studied as the benchmark case, and the wholesale price-only contract is studied as the base case in which each entity tries to maxim...

140 countries have adopted bans on exports of antiquities, in part because these are seen as needed to protect cultural heritage for future generations. However, if enforcement is imperfect, export bans may be counterproductive, spurring the growth of a black market trade which can damage objects and obscure the archaeological record. We argue that allowing fixed-duration, long-term leases of a...

Supply contracts are designed to minimize inventory costs or to hedge against undesirable events (e.g., shortages) in the face of demand or supply uncertainty. In particular, replenishment terms stipulated by supply contracts need to be optimized with respect to overall costs, profits, service levels, etc. In this paper, we shall be primarily interested in minimizing an inventory cost function ...

Counsel for a manufacturer of medical devices or durable medical equipment must have working knowledge of various legal disciplines to draft contracts with intermediaries (sales representatives and distributors) for the marketing and sale of the manufacturer's products. If the manufacturer wishes to sell its products abroad, counsel must become familiar with the laws and business practices of t...

Using Japanese scanner data of transaction prices and sales for more than 1,600 commodity groups from 1988 to 2008, we find a statistically significant negative correlation between the frequency of price changes and the degree of market concentration. We also find that structural factors of a distribution channel are significantly correlated with rigidity in retail prices. Decomposing the frequ...