Contingency Management under Asymmetric Information

• Main Authors: Iyer, Ananth, Deshpande, Vinayak, Wu, Zhengping
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2005
• Subjects: Management Sciences and Quantitative Methods
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/2275; https://doi.org/10.1016/j.orl.2004.11.007
• Institution: Singapore Management University

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...