Quality collaboration contracts under product pricing strategies

Prasenjit Mandal (), Tarun Jain () and Abhishek Chakraborty ()
Additional contact information
Prasenjit Mandal: Indian Institute of Management Calcutta
Tarun Jain: Indian Institute of Management Bangalore
Abhishek Chakraborty: XLRI Xavier School of Management

Annals of Operations Research, 2021, vol. 302, issue 1, No 10, 264 pages

Abstract: Abstract We study how the manufacturer and the supplier collaborate under various pricing and contracting scenarios. We characterize two downstream pricing strategies: (a) where the manufacturer announces the market price before the quality is determined, and (b) where the manufacturer decides the market price after the quality is determined. We also study three different contracting structures: (a) effort levels are both contractible and verifiable, (b) revenue sharing agreement between manufacturer and supplier, and (c) effort dependent contract when effort levels are verifiable but not contractible. We determine under which conditions the manufacturer should implement each of the scenarios.

Keywords: Supply chain management; Purchasing; Quality management; Pricing; Sourcing; Manufacturing (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://link.springer.com/10.1007/s10479-021-04060-w Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:annopr:v:302:y:2021:i:1:d:10.1007_s10479-021-04060-w

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/10479

DOI: 10.1007/s10479-021-04060-w

Access Statistics for this article

Annals of Operations Research is currently edited by Endre Boros

More articles in Annals of Operations Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().