Contingency management under asymmetric information

Ananth V. Iyer; Vinayak Deshpande; Zhengping Wu

doi:10.1016/j.orl.2004.11.007

Contingency management under asymmetric information

Ananth V. Iyer
, Vinayak Deshpande
, Zhengping Wu

MGT Dean's Office Administration

Purdue University

Research output: Contribution to journal › Article › peer-review

34 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 language	English
Pages (from-to)	572-580
Number of pages	9
Journal	Operations Research Letters
Volume	33
Issue number	6
DOIs	https://doi.org/10.1016/j.orl.2004.11.007
State	Published - Nov 2005

Keywords

Capacity restoration
Contingency management
Information asymmetry

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10.1016/j.orl.2004.11.007

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title = "Contingency management under asymmetric information",

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.",

keywords = "Capacity restoration, Contingency management, Information asymmetry",

author = "Iyer, \{Ananth V.\} and Vinayak Deshpande and Zhengping Wu",

year = "2005",

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language = "English",

volume = "33",

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T1 - Contingency management under asymmetric information

AU - Iyer, Ananth V.

AU - Deshpande, Vinayak

AU - Wu, Zhengping

PY - 2005/11

Y1 - 2005/11

N2 - 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.

AB - 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.

KW - Capacity restoration

KW - Contingency management

KW - Information asymmetry

UR - https://www.scopus.com/pages/publications/24144467380

U2 - 10.1016/j.orl.2004.11.007

DO - 10.1016/j.orl.2004.11.007

M3 - Article

AN - SCOPUS:24144467380

SN - 0167-6377

VL - 33

SP - 572

EP - 580

JO - Operations Research Letters

JF - Operations Research Letters

IS - 6

ER -

Contingency management under asymmetric information

Abstract

Keywords

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