We examine a supply chain in which the final product consists of components made by a buyer and a supplier. In the single moral-hazard case, the buyer's quality is observable, whereas in the double moral-hazard case, the buyer's quality is not observable. The supplier's quality is not observable...

This paper examines the role of cost application in the presence of delay and agency costs. Two risk neutral division managers share a common (production) facility and decide on (a) the demand (usage) rates, and (b) productive action. Each division manager causes costly delays at the common...