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This paper studies how asymmetric information over inputs affects workers' response to incentives and self-selection at the workplace. Using daily records from a Peruvian egg production plant, we exploit a sudden change in the worker salary structure and find that workers' effort, firm profits,...
Persistent link: https://www.econbiz.de/10012147088
We analyze a supply chain consisting of a supplier and a retailer. The supplier's unit production cost, which … characterizes his type, is only privately known to him. When trading with the retailer, the supplier demands a reservation profit … offers a menu of contracts, each of which consists of two parameters: the ordering quantity and the supplier's share of the …
Persistent link: https://www.econbiz.de/10012755263
supplier selection. We find that the likelihood that a potential supplier (hereafter, a vendor) is selected to be an actual … supplier (hereafter, supplier) increases when personal connections between executives of the vendor and the customer exist. The …
Persistent link: https://www.econbiz.de/10012853971
Using a vertically related multi-layer newsvendors framework this paper analyzes the impacts of market uncertainties and asymmetric information between firms at successive stages of a supply chain on their optimal stocking (and/or pricing) decisions. The asymmetric information along the supply...
Persistent link: https://www.econbiz.de/10012861175
We begin with a supplier (she) who wholesales to a retailer (he), and is considering to encroach into the retail market …). Under the latter encroachment, the retailer may choose to share his private demand information with the supplier, but the … supplier must pay the retailer commission fees proportional to her direct sales revenue. In contrast, under the direct channel …
Persistent link: https://www.econbiz.de/10012837849
A critical assumption in the vast literature on inventory management has been that the current level of inventory is known to the decision maker. Some of the most celebrated results such as the optimality of base-stock policies have been obtained under this assumption. Yet it is often the case...
Persistent link: https://www.econbiz.de/10012838110
supplier privileged with private information about supply disruption risk. The supplier's initial reliability, asymmetric to … regime the payoff of either the high- or low-reliability supplier monotonically increases with their initial reliability … monotonically increase. By contrast, in the pull regime, the manufacturer's payoff will always increase, while the supplier's payoff …
Persistent link: https://www.econbiz.de/10012838902
Dual channel distribution benefits upstream manufacturers but may irritate downstream retailers. The channel conflict only seems to aggravate when retailers are put at information disadvantage. We show this need not be the case. (i) We demonstrate upstream private information can improve channel...
Persistent link: https://www.econbiz.de/10012822871
We consider jointly replenishing n ex--ante identical firms that operate under an EOQ like setting using a non-cooperative game under asymmetric information. In this game, each firm, upon being privately informed about its demand rate (or inventory cost rate), submits a private contribution to...
Persistent link: https://www.econbiz.de/10013036613
Crowdfunding is a new and popular way of funding innovative products. Despite numerous advantages, there are challenges to this model, chief among them credibly signaling information about product quality to a pool of small, uninformed investors. We explore how an entrepreneur might accomplish...
Persistent link: https://www.econbiz.de/10012902537