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- Title
Sole Sourcing, Competitive Sourcing, Parallel Sourcing: Mechanisms for Supplier Performance.
- Authors
Richardson, James; Roumasset, James
- Abstract
Develops a model to evaluate the tradeoff between the costs to set up and coordinate with suppliers and the incentive for the performance provided by competition in the United States using the agency theory. Economic reasoning behind the use of multiple, parallel and sole sourcing; Impact of the cost to the buyer of low supplier performance or shirking on the choice of sourcing strategy.
- Subjects
UNITED States; SUPPLY &; demand; COMPETITION
- Publication
Managerial & Decision Economics, 1995, Vol 16, Issue 1, p71
- ISSN
0143-6570
- Publication type
Article
- DOI
10.1002/mde.4090160109