We study a buyer’s contract design problem when her supplier has private quality cost information and cares about his market valuation. Depending on whether the quality level is contractible or not, we characterize parameters of the contract menu (including quantity and transfer payment) for...

We study a supply chain with a manufacturer and two different suppliers. One supplier is a big company abroad, who is prime and offers high quality modules with long lead time. The other supplier is a small local company, taken as the urgent supplier by the manufacturer, who can produce modules...