Revealed preference and efficiency in the relationship among suppliers and clients

Recent research has examined the impacts of co-markership and partnership on inter- and intra-firm management in areas such as economic value creation and as a tool for logistic competitive advantage in Supply Chain. ‘No man is an island’ is a relevant management concept for any supply chain. Evidence collected through personal interviews and conversations indicates that, in the short-term, relationship stresses occur from a sense of frustration due to minimal payback received relative to investments made. However, satisfaction is often re-established in partnership or co-markership in the medium/long-term when both parties realize economic gain and competitive advantage. The objective of this paper is to refine an understanding of the variables that rule the relationship between suppliers and retailers through the application of a discrete model to predict relationship levels. Revealed Preference data are used in order to build a profile on the relevance of a set of parameters that influence the choice for partners.