Lippman, Steven A.; McCardle, Kevin F.; Tang, Christopher S. - In: International Journal of Production Economics 145 (2013) 1, pp. 199-207
In the design of procurement contracts, cost sharing, wherein the contractor receives a fixed fee plus a fraction of his cost, is common when the cost for completing the project is uncertain. We determine the best cost-sharing contract between a risk-neutral project manager and a risk-averse...