Two-Part Tariffs and Threshold Contracts Can Be Used to Counter

question 45

True/False

Two-part tariffs and threshold contracts can be used to counter double marginalization and increase agent effort in a supply chain.

---

Definitions:

Aggregate Planning

A process by which a company determines levels of capacity, production, subcontracting, inventory, stockouts, and pricing over a specified time horizon.

Trial-and-Error Methods

A problem-solving technique involving repeated, varied attempts which are continued until success, or until the agent stops trying.

Quantitative Courses

Courses focused on the study and application of quantitative techniques in solving real-world problems.

Yield Management

A variable pricing strategy based on understanding, anticipating, and influencing consumer behavior to maximize revenue or profits.