Firms increasingly use contingent labor to flexibly respond to demand in many environments. Labor supply agencies are growing to fill this need. As a result, firms and agencies are engaging in long-term contracts for labor supply. We develop mathematical models of the interaction between firms...

Temporary help agencies are among the largest employers of American workers today. Depending upon the interpretation, the Bureau of Labor Statistics counts between 3 and 30 million Americans in contingent and part-time work arrangements. We model firms' use of contingent labor in maximizing...