In various industries end-product manufacturers acquire core subsystems from upstream technology provider firms, and focus primarily on efficient end-product integration.We examine the strategic interactions between a technology firm that introduces a new subsystem, and the respective...

We introduce a two-period Stackelberg game of a supplier and buyer. We recognize that learning based on manufacturing experience has many advantages. Consistent with much of the literature, we assume both the buyer and supplier realize reductions in their respective production costs in period 2...