findings for contract theory, the design of commercial contracts, and the need for legal support are discussed …

the sequence of events is as follows. In a period, t, the supplier offers a contract to the retailer, and the retailer … excess inventory (we assume a lost sales model) to the next period. In period t 1, the supplier designs a new contract based … certain assumptions, we characterize and evaluate the supplier's optimal contract. To do so, we cast our problem as an adverse …

time horizon. Under a backlogging model, we show that the manufacturer's optimal dynamic long-term contract takes a simple … associated upfront fee, and, from then on, the two parties stick to a simple wholesale price contract with the retailer's chosen … price. Under a lost sales model, we show that the structure of the optimal long-term contract combines a menu of wholesale …