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The bullwhip effect describes the tendency for the variance of orders in supply chains to increase as one moves upstream from consumer demand. Previous research attributes this phenomenon to both operational and behavioral causes. Operational causes are features of the institutional setting that...
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We consider a two-stage game with an option to analyze disclosures in the first stage, and a coordination game in the second stage. Decision makers are assumed to be heterogeneous in their ability to comprehend disclosures—sophisticated players are likely to comprehend disclosures, while...
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Channel coordination using contracts is a topic that commanded a great deal of attention in the supply chain management literature. Several recent studies that tested the performance of coordinating contracts in the laboratory found that they fail to coordinate channels, and a major reason for...
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We study assembly supply chains with multiple contractors. In such settings, the original equipment manufacturer (OEM) sometimes outsources component production to different contractors, and the final product revenue may depend on the performance of the slowest (or most unlucky) contractor. To...
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This paper investigates how training and communication affect the bullwhip effect, in supply chains - an observation that orders become more variable as one moves towards the source of production. We study the issue in the laboratory using the Beer Distribution Game, and find that the visibility...
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