This article analyzes the relation between product quality, the cost of quality, and the information that can be contracted upon. We consider a setting where a risk neutral supplier sells an intermediate product to a risk neutral buyer. The supplier incurs prevention costs to reduce the...

This paper examines the relationship between product architecture, supply-chain performance metrics, and supply-chain efficiency. We model the contracting relationship between a supplier and a buyer. The supplier is privately informed about the outcome of his design/production investment. The...

<heading id="h1" level="1" implicit="yes" format="display">ABSTRACT</heading>There is growing interest in the use of markets within firms. Proponents have noted that markets are a simple and efficient mechanism for allocating resources in economies in which information is dispersed. In contrast to the use of markets in the broader economy, the efficiency of an...