Search results for " contract timing"

Modulate research effort in inbound alliance

2014

We address the R&D supply chain where a customer wants to sign an R&D contract with a supplier in an inbound open innovation style. Supplier has to decide how much effort put on contract: effort is assumed as nonobservable then it cannot be constrained contractually. We model the R&D process like a staged one, which allows for both an early contract and a late one. The overall committed effort depends on the alliance timing: earlier contracts will ask for a greater cumulated effort although they offer risk-sharing opportunity. On the other hand, later contracts see supplier with a stronger ex-ante bargaining power position, due to shorter (and then less risky) contract length and experience…