We consider under what conditions a revenue sharing contract is most effective at improving system efficiency relative to a simple wholesale price contract. Using a behavioral laboratory approach, we investigate how a supplier's individual differences in risk aversion and fairness concerns...

Integrated device manufacturers (IDMs) and foundries are two types of manufacturers in the semiconductor industry. IDMs integrate both design and manufacturing functions whereas foundries solely focus on manufacturing. Since foundries often have cost advantage over IDMs due to their...