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Milliou, Chrysovalantou - 2023

cost advantage in input production. The supplier, through its contract offers, manages to generate asymmetry, to alter …

Persistent link: https://www.econbiz.de/10014340231

Observable strategies, commitments, and contracts

Wärneryd, Karl Erik - 2014

We consider rules (strategies, commitments, contracts, or computer programs) that make behavior contingent on an opponent's rule. The set of perfectly observable rules is not well defined. Previous contributions avoid this problem by restricting the rules deemed admissible. We instead limit the...

Persistent link: https://www.econbiz.de/10010437999

Trust, investment and competition : theory and evidence from German car manufacturers

Calzolari, Giacomo; Felli, Leonardo; Koenen, Johannes; … - 2019

Based on data from a comprehensive benchmarking study on buyer-supplier relationships in the German automotive industry, we show that more trust in a relationship is associated with higher idiosyncratic investment by suppliers and better part quality - but also with more competition among...

Persistent link: https://www.econbiz.de/10012026390

Balanced scorecards : a relational contract approach

Kvaløy, Ola; Olsen, Trond E. - 2021

performance measures. We show that such an index contract may indeed be optimal if performance measures are non-verifiable so that … measurements), the optimal self-enforcing (relational) contract between a principal and a multitasking agent is an index contract …. The weights reflect a trade-off between distortion and precision for the measures. The efficiency of the contract improves …

Persistent link: https://www.econbiz.de/10012438700

Relational contracts and trust in a high-tech industry

Calzolari, Giacomo; Felli, Leonardo; Koenen, Johannes; … - 2021

We study how informal buyer-supplier relationships in the German automotive industry affect procurement. Using unique data from a survey focusing on these, we show that more trust, the belief that the trading partner acts to maintain the mutual relationship, is associated with both higher...

Persistent link: https://www.econbiz.de/10012649766

Fairness, incentives and contractual incompleteness

Fehr, Ernst; Klein, Alexander; Schmidt, Klaus M. - 2001

We show that concerns for fairness may have dramatic consequences for the optimal provision of incentives in a moral hazard context. Incentive contracts that are optimal when there are only selfish actors become inferior when some agents are concerned about fairness. Conversely, contracts that...

Persistent link: https://www.econbiz.de/10011398105

Learning from failures : optimal contract for experimentation and production

Khalil, Fahad; Lawarrée, Jacques; Rodivilov, Alexander - 2018

derive the optimal contract for both experimentation and production when the agent has private information about his … asymmetric information is endogenously determined by the length of the experimentation stage. An optimal contract uses the length …

Persistent link: https://www.econbiz.de/10011926023

Common agency equilibria with discrete mechanisms and discrete types

Martimort, David; Stole, Lars A. - 2001

This paper characterizes the equilibrium sets of an intrinsic common agencygame with discrete types and direct revelation mechanisms. After presentinga general algorithm to find the pure-strategy equilibria of this game, we use itto characterize these equilibria when the two principals control...

Persistent link: https://www.econbiz.de/10011400396

Incentives through inventory control in supply chains

Zhan, Qu; Raff, Horst; Schmitt, Nicolas - 2017

to a manufacturer increases the value of a supply chain especially for goods whose demand is highly volatile. This is …

Persistent link: https://www.econbiz.de/10011742575

Demand estimation using managerial responses to automated price recommendations

García, Daniel; Tolvanen, Juha; Wagner, Alexander K. - 2021

We provide a new framework to identify demand elasticities in markets where managers rely on algorithmic … identify demand elasticities across hotel room types and over time. We confirm these elasticity estimates with a difference …-function approach to two classic questions in the dynamic pricing literature: the evolution of price elasticity of demand over time as …

Persistent link: https://www.econbiz.de/10012534709