Contracts and trust are both seen as important aspects of successful collaboration between trading partners. However, the interplay between these two dimensions remains poorly understood. In this paper, we draw upon a framing-based perspective to study the influence of the nature of the...

We conduct decision experiments on a simple manufacturer-retailer supply chain where the retailer faces the newsvendor problem. Both firms in our experiments are represented by human subjects that engage in repeated interaction with each other. Different from the literature, we aim to understand...