Problem definition: We consider opportunities for cooperation at the supply level between two firms that are rivals in the end-product market. One of our firms is vertically integrated (VI), has in-house production capabilities, and may also supply its rival. The other is a downstream...

This paper studies a dynamic procurement and production process used by many automakers, and BMW in particular. An automaker (she) must procure components from an upstream supplier (him) to assemble cars in a given production period. Demand for cars is stochastic and retail prices are...

Problem definition: We consider opportunities for cooperation at the supply level between two firms that are rivals in the end-product market. One of our firms is vertically integrated (VI), has in-house production capabilities, and may also supply its rival. The other is a downstream...