In dynamic markets where cost of components changes fast, buyers typically auction off regular short-term contracts to fully leverage supplier competition in each period to continuously source from the lowest-cost supplier. However, too much competition through short-term contracts does not...

We analyze self- and joint procurement of countries with heterogeneous demand for a good offered by a price discriminating monopolist. We find that not only countries with low but also with high demand can benefit from committing to jointly procure equal quantities at a uniform price, even if...