Supply Chain Quality, Mandatory Insurance, and Recall Risk
AbstractIf a supplier shirks on quality, the end manufacturer risks a product recall. The manufacturer can offer a contract stipulating harsh penalties in this event. Mandatory insurance may be required if the supplier cannot be compelled to pay the penalty.
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Bibliographic InfoArticle provided by College of Business, and College of Finance, Feng Chia University, Taichung, Taiwan in its journal International Journal of Business and Economics.
Volume (Year): 11 (2012)
Issue (Month): 1 (June)
supply chain efficiency; quality; moral hazard; mandatory insurance; product recalls;
Find related papers by JEL classification:
- L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
- L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
- L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
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97-19, Massachusetts Institute of Technology (MIT), Department of Economics.
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