A Cumulative Offer Process for Supply Chain Networks

We introduce a version of the Cumulative Offer Algorithm of Hatfield and Milgrom(2005) modified for the supply chain networks setting of Ostrovsky (2008). The algorithmprovides an alternative proof for existence of a chain stable network. Moreover, we show that when choice functions satisfy same-side substitutes and cross-side complements, and the Law of Aggregate Demand and Supply, then contracts satisfy Irrelevance of Rejected Contracts (IRC) condition, a condition implicitly assumed in Ostrovsky (2008)