We employ the Nash bargaining solution to determine the value of an opportunity to negotiate a contract in an archetypal supply chain game. This unifies the allocation of payoffs and the selection of the type of contract in a bilateral supply chain; a supplier delivers goods to a news vendor...

Manufacturers who outsource components incur risks as well as benefits. If the supplied product has a major quality defect, the adverse effect on the manufacturer's reputation reduces its market share. This paper presents a discrete-time model of a buyer who collaborates with a sole supplier to...