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Author: | Lim, W. S. |
Title: | Producer-supplier contracts with incomplete information |
Journal: | Management Science
2001 : MAY, VOL. 47:5, p. 709-715 |
Index terms: | CONTRACTS GAME THEORY INFORMATION QUALITY CONTROL |
Language: | eng |
Abstract: | This paper investigates the contract design problem of a producer when he purchases parts from a supplier, and there is incomplete information regarding the quality of the parts. This is the first game-theoretic model of quality control that captures this informational rebate (when inspection is done upon receipt of the parts) and warranty. |
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