This paper studies the influence of a manager's pre-decision use of an information system on the central office's decision to provide such a system in the first place. At the outset, the manager is ignorant about the cost of an investment project. Higher effort when using the information system...

"This paper considers optimal contracts in supply chains that consist of"<formula format="inline"><simplemath>"n"≥ 2</simplemath></formula>"firms and face a potential investment hold-up problem. We show that option contracts may solve the incentive problems. First, we provide case-study evidence for the use of option contracts in the semiconductor...