On the role of revenue-sharing contracts in supply chains |
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Authors: | Harish Krishnan Ralph A Winter |
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Institution: | Sauder School of Business, University of British Columbia, 2053 Main Mall, Vancouver, BC, V6T 1Z2, Canada |
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Abstract: | The supply chain coordinating role of revenue-sharing has, to date, been examined only in static models. With downstream competition, the central conclusion in these models is negative: revenue-sharing cannot, except in degenerate form, achieve coordination. Incorporating dynamics, by allowing inventory carryover in discrete time, this paper establishes a foundation for revenue-sharing contracts in aligning incentives. |
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Keywords: | Revenue-sharing contracts Supply chain coordination Incentives |
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