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Contingency management under asymmetric information. (English) Zbl 1082.90048

Summary: 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.

MSC:

90B50 Management decision making, including multiple objectives
60E15 Inequalities; stochastic orderings
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References:

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