Zhu, Kaijie; Zhang, Rachel Q.; Tsung, Fugee - In: Management Science 53 (2007) 3, pp. 421-436
In this paper, we consider a buyer who designs a product and owns the brand, yet outsources the production to a supplier. Both the buyer and the supplier incur quality-related costs, e.g., costs of customer goodwill and future market share loss by the buyer and warranty-related costs shared by...