Is dishonesty the best policy? Supplier behaviour in a multi-tier supply chain

摘要: Abstract In this paper, we examine suppliers׳ dishonest behaviour in a multi-tiered supply chain. particular, consider buyer purchasing product consisting of two components from tier-one supplier. The supplier produces one component in-house and purchases the other tier-two suppliers decide their investment production technology, but technologies are imperfect, so may be defective. unfortunate situation where defective is produced, seller can choose to rework an acceptable standard (honesty) or ship it without reworking (dishonesty). turn, has option accepting “as is” conduct inspection identify before delivery. Our results show that benefit either high cost when negative consequences cheating low. We also strategy shift-points changes players׳ tactics lead rapidly changing outcomes. Finally, chain inefficiencies introduced by suppliers.