A firm, making a quantity decision under uncertainty, loses profit if its private information is leaked to competitors. Outsourcing increases this risk as a third party supplier may leak information for its own benefit. The firm may choose to conceal information from the competitors by entering...

Problem definition: We study the combined value of partial demand visibility and flexible capacity, two hedging mechanisms against demand uncertainty, when signing capacity contracts with temporal commitment. Academic/Practical Relevance: With new technological innovations, short commitment...