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Supplier relations and the market context: A theory of handshakes

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  • McLaren, John

Abstract

This paper provides an economic theory of the degree of formality in industrial procurement. The argement is based on a tension between two procurement goals : imposing cost discipline on the supplier, and creating the conditions for cooperative innovation.
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Suggested Citation

  • McLaren, John, 1999. "Supplier relations and the market context: A theory of handshakes," Journal of International Economics, Elsevier, vol. 48(1), pages 121-138, June.
    • Handle: RePEc:eee:inecon:v:48:y:1999:i:1:p:121-138
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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