| Article ID: | iaor199770 |
| Country: | United States |
| Volume: | 41 |
| Issue: | 10 |
| Start Page Number: | 1581 |
| End Page Number: | 1589 |
| Publication Date: | Oct 1995 |
| Journal: | Management Science |
| Authors: | Tapiero Charles S., Reyniers Diane J. |
| Keywords: | inspection, game theory |
The authors model the effect of contract parameters such as price rebates and after-sales warranty costs on the choice of quality by a supplier, the inspection policy of a producer, and the resulting end product quality. Both noncooperative and cooperative settings are explored. The paper’s contribution is to highlight the importance of strategic and contractual issues in quality management.