In the newsvendor problem, a pull-to-center effect has been asserted, whereby subjects are said to order a quantity between the mean of the demand distribution and the expected profit-maximizing quantity. These claims have only been examined using group-level aggregate statistics. Looking at...

Outsourcing of equipment repair and restoration is commonly practiced by firms across many industries. The operational performance of the equipment is determined by joint decisions of both the firm and the service provider. Although some decisions are verifiable (and thus directly contractible),...

We analyze optimal contractual arrangements in a bilateral R and D partnership between a risk-averse provider that conducts early-stage research, followed by a regulatory verification stage, and a risk-neutral client that performs late-stage development activities, including production,...

Blockchain technology has become widely accepted to demonstrate the provenance of physical goods, but there are open questions about its practical implementation and overall effect on ethical sourcing. In the diamond industry, blockchain enables credibility of the certificate of origin and...

Problem denition: Studies have shown that the behavior of subjects in newsvendor experiments is not consistent with expected profit maximization - an assumption that is often made in operations management literature. Although prospect theory has been established as a popular model of behavioral...

In this paper we examine contracts to coordinate the capacity decision of a vendor who has been hired by a client to provide call center support. We consider a variety of contracts, all based on our observations of contracts used by one large vendor. We examine the role of different contract...

We compare two strategies for outsourcing the development of information services projects: multisourcing and single-sourcing. We model these sourcing strategies when incentive contracts are based on a verifiable project metric that may or may not be aligned with the project outcome. We also...

We explore the procurement of influenza vaccines by a government whose objective is to minimize the expected social costs (including vaccine, vaccine administration, and influenza treatment costs) when a for-profit vaccine supplier has production yield uncertainty, private information about its...