This paper analyzes a sequential game where firms decide about outsourcing the production of a non-specific input good to an imperfectly competitive input market. We apply the taxonomy of business strategies introduced by Fudenberg and Tirole (1984) to characterize the different equilibria and...

A buyer seeks to procure a good characterized by its price and its quality from suppliers who have private information about their cost structure (fixed cost + marginal cost of providing quality). We solve for the optimal buying procedure, i.e. the procedure that maximizes the buyer's expected...

The advantage of multiple sourcing to protect against supplier failures arising from undependable (or even unsafe) products due to latent defects is examined using a quality-cost model of supply base composition. Prior models have focused on supplier failures arising from unreliable supply, such...

The advantage of multiple sourcing to protect against supplier failures arising from undependable products due to latent defects is examined using a model with non-linear external failure costs. Prior research has focused only on supplier failures arising from unreliable supply, such as...

An application of Capabilities-Driven Strategy to upstream E&P. As the industry evolves, so too must E&P strategies, portfolios, organizational capabilities, and operating models – capabilities must be enhanced, workflows streamlined, and productivity optimized, through broad operating model...

This chapter reviews the literature on the theory of relational incentive contracts.  It motivates the discussion by the classic applications of relational contracts to the GM-Fisher Body relationship and the relationships between Japanese automobile manufacturers and their subcontractors.  It...

Can formal contracts help resolving the holdup problem? We address this important question by studying the holdup problem in repeated transactions between a seller and a buyer in which the seller can make relation-specific investments in each period. In contrast to previous findings, we...

In this paper we test the relation between cognitive distance and innovation performance of firms engaged in technology-based alliances.The key finding is that the hypothesis of an inverted U-shaped effect of cognitive distance on innovation performance of firms is confirmed.Moreover, as...

A integração entre pequenas e grandes empresas pode ter um papel importante no fomento ao desenvolvimento do Nordeste. Há uma série de benefícios sociais decorrentes dessas integrações, que no Nordeste podem ser particularmente importantes por causa da existência de uma dualidade elevada...