The existing outsourcing literature has generally overlooked the cost differential and contract negotiations between manufacturers and suppliers (by assuming identical cost structures and adopting Stackelberg-game based models). One fundamental question that yet to be addressed is whether...

Despite the widespread of cost-driven outsourcing practices, academic research cautions that suppliers' cost advantage may weaken manufacturers' bargaining positions in negotiating outsourcing agreements, thereby hurting their profitability. In this paper, we attempt to further understand the...

We analyze contracting behaviors in a two-tier supply chain system consisting of competing manufacturers and competing retailers. We contrast the contracting outcome of a Stackelberg game, in which the manufacturers offer take-it-or-leave-it contracts to the retailers, with that of a bargaining...

The existing outsourcing literature has generally overlooked the cost differential and contract negotiations between manufacturers and suppliers (by assuming identical cost structures and adopting the Stackelberg framework). One fundamental question yet to be addressed is whether upstream...