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We analyze how the precision of a firm’s product safety testing affects its pricing strategies and the associated profit implications under strict product liability with a partial liability specification. We consider a signaling game where a firm with private product safety information chooses...
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Two game models are developed based on production costs and scope economies to investigate the widely observed multi-client outsourcing (MCO) phenomenon. Analytical results demonstrate that outsourcers' high in-house production costs and the advantage of scope economies motivate firms to...
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Corporate social responsibility (CSR) is considered in a two-echelon supply chain consisting of an upstream supplier and a downstream firm that are bound by a wholesale price contract. CSR performance (the outcome of CSR conduct) of the whole supply chain is gauged by a global variable and the...
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