Dynamic Business Share Allocation in a Supply Chain with Competing Suppliers

Abstract

This paper studies a repeated game between a manufacturer and two competing suppliers with imperfect monitoring. We present a principal-agent model for managing long-term supplier relationships using a unique form of measurement and incentive scheme. We measure a supplier’s overall performance with a rating equivalent to its continuation utility (the… (More)
DOI: 10.1287/opre.1120.1155

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