In laboratory experiments, we compare the performance of short-term and long-term contracts in a two-period supplier–buyer dyad with asymmetric cost information. We find that buyers tend to reject offers if the payoff inequality increases from one period to the next. We coin this dynamic form...

Using laboratory experiments, we study how communication media affect cooperation in a supply chain when the buyer has private information about the end-customer demand. We show that coordinating contracts (quantity discount) combined with efficient means to electronically share private...