Plambeck, Erica L.; Taylor, Terry A. - In: Management Science 53 (2007) 12, pp. 1872-1886
influences the optimal structure of supply contracts, investments in innovation and capacity, the way scarce capacity is … the contracts are designed correctly. Failing to anticipate renegotiation leads to contracts that allow too much … flexibility in the buyer's order quantity, and perform poorly relative to contracts designed to anticipate renegotiation. We …