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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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.

Tipologia del documento
Monografia (Working paper)
Lambertini, Luca
Parole chiave
innovation, product quality, vertical separation, ver- tical integration, outsourcing.
Settori scientifico-disciplinari
Data di deposito
24 Feb 2016 16:35
Ultima modifica
07 Giu 2017 08:38

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