Kim, Sang-Hyun; Netessine, Serguei - In: Management Science 59 (2013) 1, pp. 189-206
he fears revealing his proprietary cost information. We investigate how information asymmetry and procurement contracting … contracting strategies, and identify a simple strategy, expected margin commitment (EMC), that effectively promotes collaboration …. The manufacturer prefers EMC if collaboration leads to a large reduction in unit cost and/or demand variability is low …