Based on a supply chain framework, we study the stocking decision of a downstream buyer who receives private demand information and has the incentive to influence her capital market valuation. We first characterize a market equilibrium under a general single contract offer. We show that the...

We study a buyer’s contract design problem when her supplier has private quality cost information and cares about his market valuation. Depending on whether the quality level is contractible or not, we characterize parameters of the contract menu (including quantity and transfer payment) for...