The reputation of a multinational firm (a “buyer”) is hurt if its offshore supplier flagrantly violates fair labor practices. How should a buyer manage the consequent risk of reduced sales? This paper analyzes a dynamic Stackelberg game in which the buyer (the “leader”) offers financial...

Manufacturers who outsource components incur risks as well as benefits. If the supplied product has a major quality defect, the adverse effect on the manufacturer's reputation reduces its market share. This paper presents a discrete-time model of a buyer who collaborates with a sole supplier to...

This paper explores the question of whether ethical sourcing and disclosure of supply chain sources is linked to competitiveness. We model competition between two firms, both of which produce the same consumer good. One sources ethically and the second does not, and market share is affected by...