Bernstein, Fernando; DeCroix, Gregory A. - In: Management Science 50 (2004) 9, pp. 1293-1308
We model a modular assembly system in which a final assembler outsources some of the assembly task to first-tier suppliers (subassemblers), who produce modules made up of multiple components. The assembler sets module prices it will pay to the subassemblers, the subassemblers set component...