When a retailer holds no private information, a powerful supplier can use several contract types to extract for herself the first-best channel profit, leaving the retailer nothing but his reservation profit. In the case where the retailer holds private information on the probability distribution...

Recent cases of product adulteration by foreign suppliers have compelled many manufacturers to re-think approaches to deterring suppliers from cutting corners, especially when manufacturers cannot fully monitor and control the suppliers' actions. Recognizing that process certification programs,...