This paper studies implications of the ratcheting effect arising in the supply chain relationship. The ratcheting effect occurs when the retailer modifies his investment in the present period to receive a favorable wholesale price in the future. In a simple model of multi-period supply chain...

In this paper we examine a simple but suggestive setting in which the income number arises naturally (and directly) from competitive markets. While no explicit assumptions are made about individual firm's objectives, it turns out that equilibrium is consistent with the maximization of a number...

We formally establish the link between linear algebra and the double entry bookkeeping system: the system transforms a vector of numerical values corresponding to transaction amounts to a financial statements vector through matrix multiplication. The matrix is called a generator matrix (it is...