We find that when a major customer has greater market power in its industry, its supplier firm exhibits better performance. The effect of the major customer's market power on its supplier's performance is more pronounced when the economic bonding between the customer firm and the supplier is...

This paper studies a multi-stage dynamic pricing model, in which a state variable evolves as a stochastic process and affects customer demand at each stage. A firm has a limited amount of assets to sell and sets the price at each stage after observing the state variable. We find that besides the...

We apply variance analysis for studying the risk-sharing mechanism in distribution channels, in which the risk-averse buyer and supplier are suffered from commodity price shocks. We obtain the closed-form optimal pass-through rate that minimizes the total channel risk and maximizes the channel...