WAN, Zhixi; Beil, Damian R. - HEC Paris (École des Hautes Études Commerciales) - 2009
In this paper, the authors examine a supply base diversification problem faced by a buyer who periodically holds auctions to award short term supply contracts among a cohort of suppliers (i.e., the supply base). To mitigate significant cost shocks to procurement, the buyer can diversify her...