Contingency management under asymmetric information

Ananth V. Iyer, Vinayak Deshpande, Zhengping Wu

Research output: Contribution to journalArticlepeer-review

23 Scopus citations

Abstract

We model a monopolist supplier whose supply to multiple buyers is disrupted. The supplier can take costly, speed-dependent actions, to restore supply. Buyers experience private backorder costs that are unknown to the supplier. We analyze the supplier's optimal contract structure and explore the impact of an alternate supplier.

Original languageEnglish (US)
Pages (from-to)572-580
Number of pages9
JournalOperations Research Letters
Volume33
Issue number6
DOIs
StatePublished - Nov 1 2005
Externally publishedYes

Keywords

  • Capacity restoration
  • Contingency management
  • Information asymmetry

ASJC Scopus subject areas

  • Software
  • Management Science and Operations Research
  • Industrial and Manufacturing Engineering
  • Applied Mathematics

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