We analyze contracts between a large buyer and her suppliers. We find that contracts with critical product suppliers … contractual protections against it. Over time, contracts with the same supplier include additional provisions that address moral … hazard through monitoring. This dynamic effect is strongest for service contracts, where observability and verifiability are …

This paper characterizes the optimal contracts issued to suppliers when delivery is subject to disruptions and when … reduces the risk of disruption. The manufacturer (buyer) either issues symmetric contracts or selects one supplier as a major …