As national economies have integrated through removal of trade barriers, the potential for offshoringproduction was quickly recognized as a strategy to enhance firm performance. At thesame time, labor market reforms opened the door for outsourcing of labor services to specialistfirms that supply...

Moral hazard costs are estimated using a new crop insurance design approach. The simulation results show that incorporation of incentive compatibility constraints into insurance design can substantially reduce moral hazard costs.

The architecture of the firm involves determination of a boundary that encompasses the functions managed by the firm. The past decade has seen substantial reorganization of firms where vertical or horizontal integration has been unbundled into weaker forms of collaborations including value...

As national economies have integrated through removal of trade barriers, the potential for offshoring production was quickly recognized as a strategy to enhance firm performance. At the same time, labor market reforms opened the door for outsourcing of labor services to specialist firms that...

A new crop insurance model based on just random risk (natural states) is presented instead of traditional model based on random risk, guaranteed price, and guaranteed yield. The simulation approach shows how the incentive compatibility constraints resolve the moral hazard problem by the insured...

Theoretical and simulation results clarify the role of forward procurement contracting as a determinant of spot price levels and volatility. A stylized model determines market share across quality when procurers forward contract to manage quality risk. Actual supply is specified as price...