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 (research and development) activities to increase the perceived quality of the final product. It is shown that the replication of the vertically integrated monopolist’s per- formance can be attained using a two-part tariffin which the fee is a linear function of either the up- stream 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.

Luca Lambertini (2018). Coordinating Research and Development Efforts for Quality Improvement along a Supply Chain. EUROPEAN JOURNAL OF OPERATIONAL RESEARCH, 270(2), 599-605 [10.1016/j.ejor.2018.03.037].

Coordinating Research and Development Efforts for Quality Improvement along a Supply Chain

Luca Lambertini
2018

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 (research and development) activities to increase the perceived quality of the final product. It is shown that the replication of the vertically integrated monopolist’s per- formance can be attained using a two-part tariffin which the fee is a linear function of either the up- stream 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.
2018
Luca Lambertini (2018). Coordinating Research and Development Efforts for Quality Improvement along a Supply Chain. EUROPEAN JOURNAL OF OPERATIONAL RESEARCH, 270(2), 599-605 [10.1016/j.ejor.2018.03.037].
Luca Lambertini
File in questo prodotto:
File Dimensione Formato  
QualityTPTejorrev2.pdf

accesso aperto

Descrizione: versione accettata per la pubblicazione ma non nella forma editoriale definitiva
Tipo: Postprint
Licenza: Licenza per Accesso Aperto. Creative Commons Attribuzione - Non commerciale - Non opere derivate (CCBYNCND)
Dimensione 223.11 kB
Formato Adobe PDF
223.11 kB Adobe PDF Visualizza/Apri

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11585/668133
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 51
  • ???jsp.display-item.citation.isi??? 47
social impact