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Optimal contract orders and relationship-specific investments in vertical organizations

Parlane, Sarah; Ying Yi Tsai - 2013

This paper characterizes the optimal contracts issued to suppliers when delivery is subject to disruptions and when they can invest to reduce such a risk. When investment is contractible dual sourcing is generally optimal because it reduces the risk of disruption. The manufacturer (buyer) either...

Persistent link: https://www.econbiz.de/10010188418

Optimal sourcing orders under supply disruptions and the strategic use of buffer suppliers

Parlane, Sarah; Ying Yi Tsai - 2014

This paper analyses procurement from two, risk-averse, suppliers who are responsible for the timely delivery of some inputs. Their production is subject to inherent disruptions. We characterize the optimal contracts when suppliers can invest to lower the risk of delays that are costly to the...

Persistent link: https://www.econbiz.de/10010418093

Do legal standards affect ethical concerns of consumers? : An experiment on minimum wages

Danz, David; Engelmann, Dirk; Kübler, Dorothea - 2012

payment. We find that the consumers exhibit considerable fairness towards the workers by buying from the firm with the higher … average wages despite its significant crowding-out effects on consumers' fairness concerns. Abolishing a minimum wage crowds … in consumers' fairness concerns, but crowding in is not sufficient to avoid overall negative effects on the workers …

Persistent link: https://www.econbiz.de/10011489877

When ignorance is bliss : information asymmetries enhance prosocial behavior in dicator games

Winschel, Evguenia; Zahn, Philipp - 2014

In most laboratory experiments concerning prosocial behavior subjects are fully informed how their decision influences the payoff of other players. Outside the laboratory, however, individuals typically have to decide without such detailed knowledge. To asses the effect of information...

Persistent link: https://www.econbiz.de/10011492114

Capital-labor distortions in project finance

Peitz, Martin; Shin, Dongsoo - 2015

An entrepreneur needs a lender's capital input to finance a project. The entrepreneur, who is privately informed about the project environment, provides a labor input (effort). Capital and labor are perfect complements. We show that the entrepreneur may optimally distort the project's...

Persistent link: https://www.econbiz.de/10011491760

Optimal management of supply disruptions when contracting with unreliable, risk-averse, suppliers

Parlane, Sarah; Tsai, Yingyi - 2017

This paper investigates the optimal management of supply disruptions by a manufacturer who uses order inflation and/or investments in process reliability when contracting two risk-averse suppliers. We consider that these investments can be subject to moral hazard. Technically we solve a...

Persistent link: https://www.econbiz.de/10011665554

Optimal contracts for renewable electricity

Parlane, Sarah; Ryan, Lisa - 2019

Companies are increasingly choosing to procure their power from renewable energy sources, with their own set of potential challenges. In this paper we focus on contracts to procure electricity from renewable sources that are inherently unreliable (such as wind and solar). We determine the...

Persistent link: https://www.econbiz.de/10012063073

Addressing private practice in public hospitals

Guo, Xidong; Parlane, Sarah - 2020

This paper proposes a theoretical analysis of the private provision of care within public hospitals and assesses its impact on the quality and cost of healthcare. We also capture this policy's impact on the number of outpatients that are seen and the number that are cured. We show that the...

Persistent link: https://www.econbiz.de/10012221291

In search of workers' real effort reciprocity : a field and a laboratory experiment

Hennig-Schmidt, Heike; Rockenbach, Bettina; Sadrieh, … - 2005

Persistent link: https://www.econbiz.de/10003049204

Effciency concern under asymmetric information

Winschel, Evguenia; Zahn, Philipp - 2012

experiment, however, individuals have much more information available than outside the lab. We conduct a lab experiment to test …

Persistent link: https://www.econbiz.de/10011490225