Coordinating R&D efforts for quality improvement along a supply chain

Lambertini, Luca (2016) Coordinating R&D efforts for quality improvement along a supply chain. Bologna: Dipartimento di Scienze economiche DSE, p. 20. DOI 10.6092/unibo/amsacta/4643. In: Quaderni - Working Paper DSE (1054). ISSN 2282-6483.
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Abstract

The optimal design of two-part tariffs is investigated in a dynamic model where two firms belonging to the same supply chain invest in R&D activities to increase the quality of the final product. It is shown that the replication of the vertically integrated monopolist's performance can be attained using a TPT in which the fee is a linear function of either the upstream R&D effort or product quality itself. The possibility of relying on R&D figures appearing in the upstream firm's balance sheet is desirable as quality enhancement might not be observable or verifiable.

Abstract
Document type
Monograph (Working Paper)
Creators
CreatorsAffiliationORCID
Lambertini, Luca
Keywords
innovation, product quality, vertical separation, ver- tical integration, outsourcing.
Subjects
ISSN
2282-6483
DOI
Deposit date
24 Feb 2016 16:35
Last modified
07 Jun 2017 08:38
URI

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