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Using a sample of long-term supply contracts collected from SEC filings, I show that hold-up concerns and information asymmetry are important determinants of contract design. Asymmetric information between buyers and suppliers leads to shorter term contracts. However, when longer duration...
Persistent link: https://www.econbiz.de/10013086012
Rewards for better quality, penalties for poorer quality, and the type of inspection policy are among the most common quality-related provisions of supply chain contracts. In this paper, we examine the effect of rewards, penalities, and inspection policies on the behaviour of an expected cost...
Persistent link: https://www.econbiz.de/10012779974
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...
Persistent link: https://www.econbiz.de/10014110990
both the retailers' incentive to raise their buyer power and the retailers' competition for suppliers. We find that the use …
Persistent link: https://www.econbiz.de/10013125430
Recently, technological developments, such as radio frequency identification (RFID), have facilitated the identification of individual things and information sharing regarding their behavior throughout the supply chain. Such developments have generated the capabilities of a highly visible supply...
Persistent link: https://www.econbiz.de/10014147356
Suppliers are increasingly being asked to share information about their vulnerability to climate change and their strategies to reduce greenhouse gas emissions. Their responses vary widely. We theorize and empirically identify several factors associated with suppliers being especially willing to...
Persistent link: https://www.econbiz.de/10014042433
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relationship is stronger when the customer has higher ex-ante bargaining power …
Persistent link: https://www.econbiz.de/10013067874
We show that firms gain visibility and shareholder base through disclosing supply-chain relationships with large and well-known trading partners in their SEC filings. Using a novel research design that focuses on the investor recognition effect of disclosures, we find a significant improvement...
Persistent link: https://www.econbiz.de/10012904421