Geng, Qin; Minutolo, Marcel C. - In: International Journal of Production Economics 128 (2010) 1, pp. 269-279
We study a failure fee contract designed by a price-setting newsvendor retailer under information asymmetry. Under the contract, the manufacturer must pay the retailer a failure fee if the sales volume misses a target. We propose and compare two types of failure fee contracts: a brand-by-brand...