Zhibin (Ben) Yang; Ayd, Göker; inodot; n; Babich, Volodymyr - In: Manufacturing & Service Operations Management 14 (2012) 2, pp. 202-217
We study a buyer's strategic use of a dual-sourcing option when facing suppliers possessing private information about their disruption likelihood. We solve for the buyer's optimal procurement contract. We show that the optimal contract can be interpreted as the buyer choosing between...