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On the role of revenue-sharing contracts in supply chains. (English) Zbl 1208.90020
Summary: The supply chain coordinating role of revenue-sharing has, to date, been examined only in static models. With downstream competition, the central conclusion in these models is negative: revenue-sharing cannot, except in degenerate form, achieve coordination. Incorporating dynamics, by allowing inventory carryover in discrete time, this paper establishes a foundation for revenue-sharing contracts in aligning incentives.

MSC:
90B06 Transportation, logistics and supply chain management
91B40 Labor market, contracts (MSC2010)
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