Kayis, Enis; Erhun, Feryal; Plambeck, Erica L. - In: Manufacturing & Service Operations Management 15 (2013) 1, pp. 45-56
A manufacturer must choose whether to <i>delegate</i> component procurement to her tier 1 supplier or <i>control</i> it directly. Because of information asymmetry about suppliers' production costs and the use of simple quantity discount or price-only contracts, either delegation or control can yield...