Daniel Llerena

Contract Typology as a Research Method in Supply Chain Management

In this paper we present the methodology of research that has been the base of our work. The main objective is to study contractual relations; this is the reason why we talk of a contract-oriented research methodology. Through bibliographical research, assistance to workshops and industrial contacts, we identified the basic elements that are the basic issues for understanding and describing a contractual relation. After explaining why we chose these elements, we will describe them as well as their characteristics. We also show how we describe a relation between an upstream and a downstream company. Then we present a mathematical model of this relationship.

A Game Theoretical Approach of Price Negotiation and Coordination in an Innovative Firm-Supplier Context: An Experimental Analysis

This article analyzes a sequential interaction between a firm and its supplier, involving negotiation in the first round and coordination between two different production activities in the second round. The evolution of the vertical relations in the manufacturing sectors reveals that the performance of the firms increasingly depends on these two dimensions. Price negotiation determines the share of the profits of the two actors, while coordination determines the performance of the overall chain. To model this sequential interaction between the supplier and the firm, we use the tools and concepts of game theory. While game theory usually considers the coordination problem as an isolated phenomenon, the originality of our work is that it examines the problem of in a context where coordination between agents is preceded by a negotiation phase. The model emphasizes the influence of the price negotiation on the coordination round. Several theoretical predictions are proposed, derived not only from the strict assumptions of game theory, but also from assumptions which relax those of game theory. These predictions are then experimentally tested. The results do not confirm the predictions of game theory. In fact, they are consistent with the predictions put forth as alternatives to the predictions of game theory. They show i) a propensity to maximize the performance of the chain, and ii) a propensity to arrive at an equitable share of the joint profit in the chain. Finally, though the experiment was not designed to study cross-cultural or international cases, the results suggest new research directions in this area.

Elicitation of willingness to pay for upgradeable products with calibrated auction-conjoint method

Understanding consumer preferences is a key element of new product development and sustainable consumption. Among sustainable products, we consider new products with upgradability properties. Upgradeability helps to prolong the lifespan of a product, satisfying changing consumer preferences and needs. This additional created value must be measured by willingness to pay premiums. This paper uses a method which valorizes each attribute of the product and analyzes the determinants of these premiums. A key advantage of the calibrated auction-conjoint method is the possibility of estimating numerous attributes with a large number of attribute levels. The results support the idea that consumers are willing to pay premiums for upgradeable, sustainable products, although these premiums are rather weak for some durable products in the study.