Experimental Investigation of Supplier-Retailer Contracts: The Wholesale Price Contract

We examine decision making in a simple supplier-retailer wholesale price contract in the experimental economics laboratory. We observe wholesale prices and order quantities below the game-theoretical predictions. The supply chain’s efficiency is as predicted but profits are more equitably allocated.

By: Claudia Keser; Giuseppe A. Paleologo

Published in: RC23424 in 2004


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