Addendum to “Coordination of Supply Chains with Risk-Averse Agents” by Gan, Sethi, and Yan (2004)

In “Coordination of Supply Chains with Risk-Averse Agents” (POMS, Volume 13, 2004), we study the issue of coordination in supply chains involving risk-averse agents, and define a coordinating contract as one that results in a Pareto-optimal solution acceptable to each agent. We then develop coordinating contracts in various cases. In the case where the supplier and the retailer each maximizes his own expected utility, we also show that our contract yields the Nash Bargaining solution. In this addendum, we first review some related works that have appeared since the publication of the paper, and then discuss directions for future research