This paper investigates the impact of royalty revision on incentives and profits in a two-stage (research and development (R&D) stage and marketing stage) alliance with a marketer and an innovator. The marketer offers royalty contracts to the innovator. We find that the potential for royalty...

We consider a make-to-order supply chain where a retailer sells a product for a manufacturer. There is a single selling season, during which the retailer receives customer orders and then sends the orders to the manufacturer for fulfillment. The manufacturer privately exerts effort to install...

This paper investigates the impact of royalty revision on incentives and profits in a two-stage (R&D stage and marketing stage) alliance with a marketer and an innovator. The marketer offers royalty contracts to the innovator. We find the potential for royalty revision leads to more severe...