Purpose – Drawing on Transaction Cost Economics (TCE) theory and Organizational Information Processing Theory (OIPT), this study investigates how the alignments between the characteristics of service (i.e., task complexity and measurement ambiguity) and governance mechanisms (i.e., contract...

Problem definition: We study the bullwhip effect and analyze the impact of human behavior. We separate rational ordering in response to increasing incoming orders from irrational ordering. Academic/Practical Relevance: Prior research has shown that the bullwhip effect occurs in about two-thirds...