Tag Archives: game theory

Designing supplier contracts: Asymmetric information

Posted on April 18, 2013 by berkeleythoughttrain

How does Rackspace, a hosting services provider, structure supplier contracts? Suppliers might have a fixed cost per unit but this information is not public knowledge. Rackspace must assume the probability supplier is low cost is ‘p’ and ‘1-p’ is the … Continue reading →

Posted in Economics, Game Theory, Strategy, Technology | Tagged , | 1 Comment