Recent cases of product adulteration by foreign suppliers have compelled many manufacturers to re-think approaches to deterring suppliers from cutting corners, especially when manufacturers cannot fully monitor and control the suppliers' actions. Recognizing that process certification programs,...

We solve a sequential-moves game that involves three players: the franchisor, the entrepreneur, and the banks. The franchisor chooses values of contract terms (a one-time franchise fee and a royalty rate for on-going payments). The entrepreneur dynamically decides when to sign this contract and...

Recent cases of product adulteration by foreign suppliers have compelled many manufacturers to rethink approaches to deterring suppliers from cutting corners, especially when manufacturers cannot fully monitor and control the suppliers' actions. In this paper, we study three mechanisms for...

The American public raised serious concerns about product safety in 2007, when the number of product recalls broke a new record. Following a temporary drop in 2008, both the number and retail value of recalled units have been increasing, despite various efforts exerted by government agencies and...