Supply Chain Quality, Mandatory Insurance, and Recall Risk
If 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.
Volume (Year): 11 (2012)
Issue (Month): 1 (June)
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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Reyniers, Diane J. & Tapiero, Charles S., 1995. "Contract design and the control of quality in a conflictual environment," European Journal of Operational Research, Elsevier, vol. 82(2), pages 373-382, April.
- George Tagaras & Hau L. Lee, 1996. "Economic Models for Vendor Evaluation with Quality Cost Analysis," Management Science, INFORMS, vol. 42(11), pages 1531-1543, November.
- Peter Diamond, 2002.
"Integrating Punishment and Efficiency Concerns in Punitive Damages for Reckless Disregard of Risks to Others,"
Journal of Law, Economics and Organization,
Oxford University Press, vol. 18(1), pages 117-139, April.
- Diamond, P.A., 1997. "Integrating Punishment and Efficiency Concerns in Punitive Damages for Reckless Disregard of Risks to Others," Working papers 97-19, Massachusetts Institute of Technology (MIT), Department of Economics.
- Richard Arnott & Joseph Stiglitz, 1991. "Equilibrium in Competitive Insurance Markets with Moral Hazard," NBER Working Papers 3588, National Bureau of Economic Research, Inc. Full references (including those not matched with items on IDEAS)
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