Buyers

Distribution by Scientific Domains
Distribution within Business, Economics, Finance and Accounting


Selected Abstracts


SO YOU ALREADY HAVE A SURVEY DATABASE?,A SEVEN-STEP METHODOLOGY FOR THEORY BUILDING FROM SURVEY DATABASES: AN ILLUSTRATION FROM INCREMENTAL INNOVATION GENERATION IN BUYER,SELLER RELATIONSHIPS

JOURNAL OF SUPPLY CHAIN MANAGEMENT, Issue 4 2010
SUBROTO ROY
Across business disciplines, the importance of database research for theory testing continues to increase. The availability of data also has increased, though methods to analyze and interpret these data lag. This research proposes a method for extracting strong measures from survey databases by a progression from qualitative to quantitative techniques. To test the proposed method, this study uses the Industrial Marketing and Purchasing (IMP) survey database, which includes data from firms in several European countries. The proposed method consists of two phases and seven steps, as illustrated in the context of the firm's incremental innovation generation for buyer,seller relationships. This systematic progression moves from a broad but valid empirical case study to the development of a narrow and reliable measure of incremental innovation generation in the IMP database. The proposed method can use supply chain survey databases for theory development without requiring primary data collection, assuming certain conditions. [source]


WHOLESALE PRICING WHEN BUYERS ARE ASYMMETRIC COURNOT COMPETITORS,

THE MANCHESTER SCHOOL, Issue 2 2006
GIUSEPPE COLANGELO
This paper focuses on the pricing policy of a well-informed profit- maximizing producer selling to asymmetric retailers who compete à la Cournot. An optimal upstream two-part tariff implies the exit of the inefficient retailer, thus causing downstream monopolization. When this would bring about a significant increase in the efficient retailer's bargaining power, as is plausible, the producer will try to avoid this and consequently choose a pricing scheme that does not cause downstream monopolization. When this is the case, two alternatives emerge: a two-part tariff (ensuring no downstream monopolization) or third-degree price discrimination. The more asymmetric in cost retailers are (consistent with no downstream monopolization), the more likely it is to see third-degree price discrimination as the equilibrium wholesale pricing. When third-degree price discrimination is implemented, a welfare loss is easily produced. [source]


Using Buyer,Supplier Performance Frontiers to Manage Relationship Performance,

DECISION SCIENCES, Issue 1 2009
Anthony D. Ross
ABSTRACT This article presents a consensus-building methodology to implement dyadic performance measurement. It focuses on transmuting supplier performance and buyer performance metrics on several important attributes into actionable relationship management plans using Clark's (1996) theory of performance frontiers. Access to the supplier performance management program of a Fortune 100 corporation was granted to the research team. Direct observation of practice and in-depth discussions with several managers provided a roadmap for investigating both the literature on quantitative evaluation methods and the empirically derived theory on buyer,supplier relationships from several perspectives. This study describes a multiphase, iterative framework that uses current methods and theory on dyadic buyer,supplier evaluation to consider: (i) evaluation criteria and their importance; (ii) whether the improvement focus should be on strengths, weaknesses, or both; and (iii) whether the referent role supplier should be the ideal supplier, best supplier, or best-in-strategic-group supplier in the focal supply base. We illustrate a unifying approach by reporting results from a large buyer and 35 of its key suppliers. This research makes the case for managing supplier relationships through the dyadic performance lens. The outputs from this framework provide individual supplier improvement paths which are actionable prescriptions for each buyer,supplier dyad, as well as recommendations for strategic group formation. [source]


Understanding Buyer and Supplier Power: A Framework for Procurement and Supply Competence

JOURNAL OF SUPPLY CHAIN MANAGEMENT, Issue 2 2001
Andrew Cox
[source]


The Impact of Regulation on Buyer and Supplier Power

JOURNAL OF SUPPLY CHAIN MANAGEMENT, Issue 2 2001
Joe Sanderson
[source]


Organizational Learning in Global Purchasing: A Model and Test of Internal Users and Corporate Buyers,

DECISION SCIENCES, Issue 2 2000
G. Tomas M. Hult
ABSTRACT This research examines a model centered on organizational learning in purchasing. Two different studies are conducted to test the hypotheses among purchasing users (Study 1) and buyers (Study 2). The user sample consists of users representing 355 strategic business units of a Fortune 500 multinational corporation. The buyer sample consists of corporate buyers of 200 multinational corporations drawn from the membership directory of the National Association of Purchasing Management (NAPM). In each study, the focus is on the learning relationships between corporate buyers and internal users in the purchasing organization. Based on the two studies, the results suggest that organizational learning in the purchasing process is influenced by the organizational culture factors of localness, transformational leadership, and openness. Organizational learning has a positive effect on information processing in the purchasing system, which, in turn, has a positive influence on the cycle time of the purchasing process. [source]


Consumer attitude and behaviour towards tomatoes after 10 years of Flandria quality labelling

INTERNATIONAL JOURNAL OF FOOD SCIENCE & TECHNOLOGY, Issue 9 2008
Wim Verbeke
Summary In recent years, trust in food safety and food quality has decreased as a result of consecutive food crises. Consequently, numerous quality labels signalling process-related credence characteristics have been established. One of these labels is the Belgian Flandria quality label for fresh fruit and vegetables. Based on cross-sectional data collected through a self-administered consumer survey (n = 373), this paper addresses consumer attitudes, behaviour and perception towards tomatoes in general, and the Flandria tomato label in particular. Buyers, who constitute 26.8% of the sample, perceive Flandria tomatoes as superior to other tomatoes because of their guarantee of origin, better taste and stricter production control. However, they also report the strongest perception of Flandria as an ordinary tomato as compared to non-buyer segments. Overall, findings indicate that the Flandria label , after being intensively used for 10 years for a wide range of other fruits and vegetables besides tomatoes , has become fairly standard for tomatoes with little perceived differentiation apart from its certified production and origin. [source]


An assessment of consumer preference for fair trade coffee in Toronto and Vancouver

AGRIBUSINESS : AN INTERNATIONAL JOURNAL, Issue 2 2010
John Cranfield
In this article, the authors use conjoint analysis to elicit the views of coffee consumers on the attributes of Fair Trade coffee using data from the Greater Toronto Area and Vancouver collected through face-to-face interviews with consumers. The impact of socioeconomic and demographic factors on respondents' acceptance of Fair Trade coffee is evaluated using cluster analysis and multinomial logit models. The results suggest that, regardless of location, consumers place a strong premium on price and labeling claims. Three consumer segments are identified in each city; in Toronto, these segments are labeled Fair Trade-Focused, Price Conscious, and Balanced Buyers; for Vancouver these segments are labeled Organic and Fair Trade-Focused, Price Conscious, and Balanced Buyers. Although a broad spectrum of variables influences segment membership, no single variable explains membership in the same segment in each city. Such a result is rather telling; it suggests deeper constructs underlie segment membership, and presumably consumption behavior with respect to Fair Trade coffee. © 2010 Wiley Periodicals, Inc. [source]


Sourcing Through Auctions and Audits

PRODUCTION AND OPERATIONS MANAGEMENT, Issue 2 2008
Ying-Ju Chen
Buyers often find that obtaining complete information about suppliers is costly. In such scenarios, there is a trade-off between the costs of obtaining information and the benefits that accrue to the owners of such information. There are also various ways in which the missing information can be obtained or inferred. In this paper, we compare the efficiency of obtaining information via the classical mechanism design approach, which relies on the information available before the contracts are designed, with that of an "audit-based" approach, which relies on the information obtained after the fact. In our model, a single buyer (the Stackelberg leader) wishes to procure a package of products or services from various competing suppliers that possess private cost information. We allow for arbitrary cost and revenue functions and can incorporate multiple cost and revenue drivers. We show how the buyer can optimize her profit and at the same time coordinate the channel by using a contract scheme involving auctions, audits, and profit sharing. We also examine the behavior of this mechanism when the supplier can exert effort to reduce cost but the cost of effort cannot be verified. We propose several mechanisms for different precontract informational scenarios and compare their performance. [source]


On E-Auctions for Procurement Operations

PRODUCTION AND OPERATIONS MANAGEMENT, Issue 4 2007
Michael H. Rothkopf
Electronic auctions have revolutionized procurement in the last decade. In many situations, they have replaced negotiations for supplier selection and price setting. While they have often greatly reduced transaction costs and increased competition, they have also encountered problems and resistance from suppliers resenting their intrusion on cooperative supplier/buyer relationships. In response to these issues, procurement auctions have evolved in radical new directions. Buyers use business rules to limit adverse changes. Some procurement auctions allow bidders to offer variants in the specifications of products to be supplied. Most important, some suppliers are allowing bidders to bid on packages of items, not just individual items. This tends to change procurement auctions from zero-sum fights over supplier profit margins to win-win searches for synergies. These changes have opened up many new research areas. Researchers are trying to improve how to deal with the computational issues involved in package auctions and to analyze the new auctions forms that are evolving. In general, equilibrium incentives are not known, and dealing with ties in package auctions is an issue. Computer scientists are analyzing the use of computerized bidding agents. Mechanisms that combine auctions with fixed buy prices or with negotiations need to be analyzed. [source]


R&D AND BUYERS' WAITING OPTION,

THE JOURNAL OF INDUSTRIAL ECONOMICS, Issue 1 2006
EIRIK GAARD KRISTIANSEN
Anticipation of technological progress may induce buyers to delay the adoption of new technologies. We analyze how buyers' waiting option may feed back into firm's timing of innovations. Buyers are shown to have inefficiently weak incentives to wait for potentially better products. This induces firms to accelerate the introduction of new products. Furthermore, buyers' inclination to adopt new technologies prematurely expands firms' scope for preemption of potential rivals. The analysis sheds light on R&D competition in durable goods markets such as the market for aircraft. [source]


Protein and the demand for hard wheats,

AUSTRALIAN JOURNAL OF AGRICULTURAL & RESOURCE ECONOMICS, Issue 2 2009
William W. Wilson
Wheat protein is one of the most important specifications used in domestic and import purchase contracts and is used partly as a proxy for functional quality. The purpose of this article is to analyse the demand for wheat delineated by protein class. A choice-based econometric model is specified and estimated using a novel dataset of pooled wheat shipments to individual importing countries. Buyers are importing countries that make purchase decisions among different protein levels. The model frames the choice in terms of attributes of the choice and of the importing countries. Results indicate that there have been shifts over time, and purchase probabilities are highly price elastic and vary across importing regions. Functional characteristics including wet gluten content and extraction rates have significant impacts on purchase probabilities. These results have implications for breeders as it clearly illustrates the role of protein and functional characteristics on demand. The results also have implications for analysts modelling wheat trade in that there are many factors impacting market segments that would not be captured in conventional demand specifications. [source]


Formation of buyer-seller trade networks in a quality-differentiated product market

CANADIAN JOURNAL OF ECONOMICS, Issue 3 2006
Ping Wang
Abstract We examine the formation of buyer-seller links when exchange can take place only if such a link exists. Sellers produce products of different qualities, and multiple sellers can form a sellers' association to pool their customers setting uniform prices. Buyers form trade links with individual sellers or sellers' associations. We show which buyer-seller links will form and find the set of links that are stable and show how these links influence prices. We also show that a trade network mismatch may occur where a high-quality good remains unsold even without an economy-wide excess supply of goods. Les auteurs examinent le processus de formation de liens acheteurs-vendeurs quand l'échange ne peut s'effectuer que si de tels liens existent. Les vendeurs produisent des biens de différentes qualités et un nombre de vendeurs peuvent former une association pour mettre en commun leurs clients et imposer des prix uniformes. Les acheteurs forment des liens commerciaux avec des vendeurs individuels ou avec leurs associations. On montre quels liens acheteurs-vendeurs vont se former, quels liens vont s'avérer stables, et comment ces liens influencent le niveau des prix. On montre aussi qu'un réseau de commerce peut être mal adapté et un bien de haute qualité resté sans preneur même s'il n'y a pas offre excédentaire de biens dans toute l'économie. [source]


Contracting With Uncertain Level Of Trust

COMPUTATIONAL INTELLIGENCE, Issue 4 2002
Sviatoslav Braynov
The paper investigates the impact of trust on market efficiency and bilateral contracts. We prove that a market in which agents are trusted to the degree they deserve to be trusted is as efficient as a market with complete trustworthiness. In other words, complete trustworthiness is not a necessary condition for market efficiency. We prove that distrust could significantly reduce market efficiency, and we show how to solve the problem by using appropriately designed multiagent contracts. The problem of trust is studied in the context of a bilateral negotiation game between a buyer and a seller. It is shown that if the seller's trust equals the buyer's trustworthiness, then the social welfare, the amount of trade, and the agents' utility functions are maximized. The paper also studies the efficiency of advance payment contracts as a tool for improving trustworthiness. It is proved that advance payment contracts maximize the social welfare and the amount of trade. Finally, the paper studies the problem of how to make agents truthfully reveal their level of trustworthiness. An incentive,compatible contract is defined, in which agents do not benefit from lying about their trustworthiness. The analysis and the solutions proposed in this paper could help agent designers avoid many market failures and produce efficient interaction mechanisms. [source]


Using Buyer,Supplier Performance Frontiers to Manage Relationship Performance,

DECISION SCIENCES, Issue 1 2009
Anthony D. Ross
ABSTRACT This article presents a consensus-building methodology to implement dyadic performance measurement. It focuses on transmuting supplier performance and buyer performance metrics on several important attributes into actionable relationship management plans using Clark's (1996) theory of performance frontiers. Access to the supplier performance management program of a Fortune 100 corporation was granted to the research team. Direct observation of practice and in-depth discussions with several managers provided a roadmap for investigating both the literature on quantitative evaluation methods and the empirically derived theory on buyer,supplier relationships from several perspectives. This study describes a multiphase, iterative framework that uses current methods and theory on dyadic buyer,supplier evaluation to consider: (i) evaluation criteria and their importance; (ii) whether the improvement focus should be on strengths, weaknesses, or both; and (iii) whether the referent role supplier should be the ideal supplier, best supplier, or best-in-strategic-group supplier in the focal supply base. We illustrate a unifying approach by reporting results from a large buyer and 35 of its key suppliers. This research makes the case for managing supplier relationships through the dyadic performance lens. The outputs from this framework provide individual supplier improvement paths which are actionable prescriptions for each buyer,supplier dyad, as well as recommendations for strategic group formation. [source]


Supply Management Under High Goal Incongruence: An Empirical Examination of Disintermediation in the Aerospace Supply Chain

DECISION SCIENCES, Issue 3 2008
Christian L. Rossetti
ABSTRACT Aftermarket sales and profits are becoming an increasingly important part of an original equipment manufacturer's (OEM) business model. Because replacement parts often do not require further manufacturing, OEMs act as intermediaries in the aftermarket. As with any intermediary, the OEM must concern itself with suppliers disintermediating its supply chain selling replacement parts directly to the OEM's customers. We frame supply chain disintermediation (SCD) as a principal,agent contracting problem between an OEM buyer and a supplier. Hypotheses relate contract conditions, goal incongruence, supplier capabilities and contract enforcement to SCD. The data are collected from the aerospace industry using a multimethod study, combining an Internet-based survey with archival data. Causal modeling with structural equation modeling (SEM) shows general support for the hypotheses. Particularly, SCD is positively related to buyer,supplier goal incongruence. The agency model offers insights that differ from previous transaction-cost-based models of buyer,supplier relationships. OEM buyers with a lucrative aftermarket should consider aligning goals through incentives rather than relying entirely on economic hostages associated with specific assets. [source]


The Impact of E-Replenishment Strategy on Make-to-Order Supply Chain Performance

DECISION SCIENCES, Issue 1 2005
E. Powell Robinson Jr.
ABSTRACT This research investigates the impact of electronic replenishment strategy on the operational activities and performance of a two-stage make-to-order supply chain. We develop simulation-based rolling schedule procedures that link the replenishment processes of the channel members and apply them in an experimental analysis to study manual, semi-automated, and fully automated e-replenishment strategies in decentralized and coordinated decision-making supply chain structures. The average operational cost reductions for moving from a manual-based system to a fully automated system are 19.6, 29.5, and 12.5%, respectively, for traditional decentralized, decentralized with information sharing, and coordinated supply chain structures. The savings are neither equally distributed among participants, nor consistent across supply chain structures. As expected, for the fully coordinated system, total costs monotonically decrease with higher levels of automation. However, for the two decentralized structures, under which most firms operate today, counter-intuitive findings reveal that the unilateral application of e-procurement technology by the buyer may lower his purchasing costs, but increase the seller's and system's costs. The exact nature of the relationship is determined by the channel's operational flexibility. Broader results indicate that while the potential economic benefit of e-replenishment in a decentralized system is substantial, greater operational improvements maybe possible through supply chain coordination. [source]


The Value of Production Schedule Integration in Supply Chains

DECISION SCIENCES, Issue 4 2001
Lee Krajewski
Abstract This study explores the value of integrated production schedules for reducing the negative effects of schedule revisions in supply chains involving buyer and supplier firms. A stochastic cost model is developed to evaluate the total supply chain cost with integrated purchasing and scheduling policies. The model minimizes the costs associated with assembly rate adjustment, safety stock, and schedule changes for all supply chain members. Through experimentation, the paper examines the impact of several environmental factors on the value of schedule integration. This study finds that schedule integration can lead to overall cost savings in a supply chain, but some firms may have to absorb costs in excess of those they would incur with independent scheduling. Environments with high inventory holding costs and long supplier lead times may not find it beneficial to adopt an integrated schedule. Forecast effectiveness plays a critical role in realizing the benefits of schedule integration. The paper concludes with suggestions for future research. [source]


Unobservable Investment and the Hold-Up Problem

ECONOMETRICA, Issue 2 2001
Faruk Gul
We study a two-person bargaining problem in which the buyer may invest and increase his valuation of the object before bargaining. We show that if all offers are made by the seller and the time between offers is small, then the buyer invests efficiently and the seller extracts all of the surplus. Hence, bargaining with frequently repeated offers remedies the hold-up problem even when the agent who makes the relation-specific investment has no bargaining power and contracting is not possible. We consider alternative formulations with uncertain gains from trade or two-sided investment. [source]


Is It Wrong To Pay For Housework?

HYPATIA, Issue 2 2002
Gabrielle Meagher
This paper assesses arguments that paying for housework compromises the moral integrity of either the buyer or seller or both. I find that none provides adequate justification for avoiding paying for housework. Instead, I argue that the vigorous pursuit of justice for women workers will best remedy injustice in service sector occupations, including paid housework. [source]


Equilibrium Partner Switching in a Bargaining Model With Asymmetric Information

INTERNATIONAL ECONOMIC REVIEW, Issue 4 2000
Gianni De Fraja
We study a model in which the seller of an indivisible object faces two potential buyers and makes an offer to either of them in each period. We find that the seller's ability to extract surplus from them depends crucially on the value of the cost of switching from one buyer to the next. If the seller is pessimistic about the buyers' valuations and there is a switching cost, however small, then the market is a natural bilateral monopoly; the second buyer is never called on. If the switching cost is zero, or if the seller is optimistic, then switching, and possibly recall of the original buyer, may occur. [source]


The New Role of the Internal Auditor: Implications for Internal Auditor Objectivity

INTERNATIONAL JOURNAL OF AUDITING, Issue 2 2000
Richard G. Brody
The role of the internal auditor continues to evolve. The recent emphasis on consulting activities has brought new questions and concerns regarding the ability of internal auditors to function in an independent and objective manner. The purpose of this research is to explore whether internal auditors view their consulting role as one in which they are to provide objective feedback to management or one in which they are to provide solutions that they believe are in the best interests of their company. Specifically, we examine whether the internal auditors' judgments are dependent on their company's role (buyer or seller) in an acquisition. Results revealed that the role of the company in the negotiation process did influence judgments. This suggests that internal auditors are likely to assume the position that is in the best interests of their employer. Implications of these results are discussed as are suggested areas for future research. [source]


Strategic decision-making in healthcare organizations: it is time to get serious,

INTERNATIONAL JOURNAL OF HEALTH PLANNING AND MANAGEMENT, Issue 3 2006
David W. Young
Abstract New and continuing environmental demands and competitive forces require healthcare organizations to be increasingly careful in thinking about their strategies. They must do so in a highly unusual (multi-actor) marketplace where a variety of system interdependencies complicate decision-making. A good strategy requires an attempt to understand the real, as distinct from the perceived, environment, and is characterized by explicit tradeoffs along three dimensions: service or program variety, patient needs, and patient access. The quality of these tradeoffs can be assessed in terms of whether the strategy is (a) attuned to critical success factors in the organization's environment, (b) highly focused, (c) linked to the organization's capabilities, and (d) accompanied by an activity set that is difficult for competitors to imitate. An organization also must be capable of adapting appropriately to changes in its environment. Thus, even the best strategy must be reviewed constantly if it is to remain viable. A strategy's sustainability can be adversely affected by increased buyer or supplier power, lowered barriers to entry, growing rivalry, the threat of substitutes, and increased slack in resource usage. By thinking more creatively in the future than they have in the past, healthcare organizations can make tradeoffs and choose a focused strategic position. They then can design an activity set that is appropriate for that position, and that will assist them to achieve both financial viability and superior programmatic performance. A well-designed activity set also will assist them to sustain their performance in the face of changing environmental demands and competitive forces. Copyright © 2006 John Wiley & Sons, Ltd. [source]


Operational Improvement: The Key to Value Creation in Private Equity

JOURNAL OF APPLIED CORPORATE FINANCE, Issue 3 2009
Gary Matthews
With credit tightening having reduced the availability of leverage and intensified the competition for new deals, the economic recession has caused many companies in private equity firm portfolios to under-perform. These changes are forcing the private equity firms to depend even more on their ability to improve operating performance to achieve their investment goals and generate attractive returns. But few PE firms have proved capable of achieving such improvements in portfolio companies consistently over time. In this paper, the authors discuss several ways that private equity firms use their operating expertise to drive value in their portfolio companies. They also examine the analytical framework used by some PE firms when assessing and prioritizing the many operational initiatives that could be undertaken within a newly acquired company. Part of that examination involves a detailed look at how private equity firms assemble an attractive mix of operational improvement projects in their initial 100-day plans. Finally, the authors explore one of the challenges faced by private equity firms when attempting to implement operational enhancements in newly acquired companies: bringing about change without alienating company management. The real-world application of this approach is demonstrated with a case study that shows how one private equity buyer put its operational skills into practice to help create value within a mid-sized portfolio company. [source]


Managing the postclosing integration

JOURNAL OF CORPORATE ACCOUNTING & FINANCE, Issue 2 2009
Andrew J. Sherman
A merger and acquisition (M&A) closing usually brings great sighs of relief. Everyone has worked hard to ensure success. But actually this is not the end of the process. The hard work of postclosing integration is about to begin. Managing that postclosing integration is one of the buyer's greatest challenges. How can the buyer avoid common pitfalls and engineer a smooth transition? The author of this article provides the answers. © 2009 Wiley Periodicals, Inc. [source]


Small producers, supermarkets, and the role of intermediaries in Turkey's fresh fruit and vegetable market

AGRICULTURAL ECONOMICS, Issue 2009
Céline Bignebat
Supermarkets; Small farmers; Fresh fruit and vegetables; Turkey Abstract A wide range of empirical studies show the extent to which the rise of supermarkets in developing countries transforms domestic marketing channels. In many countries, the exclusion of small producers from so-called dynamic marketing channels (that is, remunerative ones) has become a concern. Based on data collected in Turkey in 2007 at the producer and the wholesale market levels, we show that intermediaries are important to understanding the impact of downstream restructuring (supermarkets) on upstream decisions (producers). Results show first that producers are not aware of the final buyer of their produce, because intermediaries hinder the visibility of the marketing channel, thereby restricting a producer's choice to that of the first intermediary. Econometric results show that producers who are indirectly linked to the supermarkets are more sensitive to their requirements in terms of quality and packaging than to the price premia compensating the effort made to meet standards. Therefore, the results lead us to question the role of the wholesale market agents who act as a buffer in the chain and protect small producers from negative shocks, but who stop positive shocks as well, and thereby reduce incentives. [source]


Courts and contract enforcement in transition agriculture: theory and evidence from Poland

AGRICULTURAL ECONOMICS, Issue 2-3 2004
Volker Beckmann
Abstract The paper investigates theoretically and empirically the role of courts for contract enforcement in transition agriculture. In a survey of 306 Polish farmers conducted in 1999, only 38.5% respondents reported to believe that they could use courts to enforce contracts with their most important customer. Furthermore, those who believed the legal system could be used would accept significant financial losses before taking action. We develop a theoretical model, based on the costs and benefits of court enforcement, which captures the boundary between contracts to be regarded as ,enforceable' and ,not-enforceable' and, simultaneously, the threshold of taking legal action. The empirical analysis strongly supports our model: (1) the farmers' responses can be explained by cost-benefit calculations regarding the use of courts, (2) the legal ,enforceability' of contracts depends not only on the efficiency of the legal system but also on the attributes of the transaction, the contracts and the relationship between buyer and seller and (3) the threshold of taking legal action is significantly influenced by indirect costs of court enforcement, such as the disruption of a valuable business relationship, and by the availability of alternative enforcement mechanisms. [source]


Relationship Investment and Channel Performance: An Analysis of Mediating Forces

JOURNAL OF MANAGEMENT STUDIES, Issue 7 2009
Yadong Luo
abstract This study explores how relationship-specific investment (RSI) enhances interfirm cooperation in buyer,supplier partnerships in an emerging market. Building upon the logic of economic sociology, we argue that the contribution of RSI to the success in buyer,supplier partnerships will be mediated by reduced opportunism and reduced conflict and by heightened commitment and knowledge sharing. Our survey of 216 paired distributors (buyers) and manufacturers (suppliers) in China generally supports this argument, leading to a conclusion that RSI is not a direct performance propeller but an important builder of relational infrastructure in which mid-range processes are nourished. Theoretical implications in strategic management and supply chain management research are highlighted. [source]


Taxes and the Efficiency-Rent Extraction Trade-off

JOURNAL OF PUBLIC ECONOMIC THEORY, Issue 5 2006
ANIL ARYA
This paper presents an adverse selection model in which progressive taxation enhances productive efficiency by encouraging a principal (buyer) to be less aggressive in contracting with an agent (seller). Wary of padded cost budgets, the buyer employs a hurdle-rate procurement policy. With a low cost hurdle, the buyer keeps greater profits when transactions are undertaken but trade occurs less often. While the hurdle is unaffected by a flat tax, a progressive tax tilts the buyer's preference: the buyer's benefit from a lower hurdle becomes less pronounced, since the marginal increase in his profits is muted in after-tax terms. The result is increased trade and the possibility of Pareto improvements. [source]


Likelihood of Illegal Alcohol Sales at Professional Sport Stadiums

ALCOHOLISM, Issue 11 2008
Traci L. Toomey
Background:, Several studies have assessed the propensity for illegal alcohol sales at licensed alcohol establishments and community festivals, but no previous studies examined the propensity for these sales at professional sport stadiums. In this study, we assessed the likelihood of alcohol sales to both underage youth and obviously intoxicated patrons at professional sports stadiums across the United States, and assessed the factors related to likelihood of both types of alcohol sales. Methods:, We conducted pseudo-underage (i.e., persons age 21 or older who appear under 21) and pseudo-intoxicated (i.e., persons feigning intoxication) alcohol purchase attempts at stadiums that house professional hockey, basketball, baseball, and football teams. We conducted the purchase attempts at 16 sport stadiums located in 5 states. We measured 2 outcome variables: pseudo-underage sale (yes, no) and pseudo-intoxicated sale (yes, no), and 3 types of independent variables: (1) seller characteristics, (2) purchase attempt characteristics, and (3) event characteristics. Following univariate and bivariate analyses, we a separate series of logistic generalized mixed regression models for each outcome variable. Results:, The overall sales rates to the pseudo-underage and pseudo-intoxicated buyers were 18% and 74%, respectively. In the multivariate logistic analyses, we found that the odds of a sale to a pseudo-underage buyer in the stands was 2.9 as large as the odds of a sale at the concession booths (30% vs. 13%; p = 0.01). The odds of a sale to an obviously intoxicated buyer in the stands was 2.9 as large as the odds of a sale at the concession booths (89% vs. 73%; p = 0.02). Conclusions:, Similar to studies assessing illegal alcohol sales at licensed alcohol establishments and community festivals, findings from this study shows the need for interventions specifically focused on illegal alcohol sales at professional sporting events. [source]