Is Revenue Sharing Right for Your Supply Chain?

CALIFORNIA MANAGEMENT REVIEW VOL. 56, NO. 4 SUMMER 2014

Columbia Business School Research Paper No. 16-60

34 Pages Posted: 26 Aug 2016

See all articles by Mehmet Sekip Altug

Mehmet Sekip Altug

George Mason University

Garrett van Ryzin

Cornell Tech; Lyft, Inc.

Date Written: May 5, 2014

Abstract

Many firms have enjoyed remarkable success using revenue-sharing contracts to improve supply chain performance. The video rental industry and its pioneering deal with movie studios is one such example. At the same time, other firms have struggled to make it work. What accounts for this difference? When can revenue sharing create significant value and what are the implementation costs? By comparing and contrasting several case examples, this article develops a general framework that helps answer these questions, which is based on the fundamental sources of added value and added cost.

Keywords: Contracts, Operations Management, Supply Chain

Suggested Citation

Altug, Mehmet Sekip and van Ryzin, Garrett, Is Revenue Sharing Right for Your Supply Chain? (May 5, 2014). CALIFORNIA MANAGEMENT REVIEW VOL. 56, NO. 4 SUMMER 2014 ; Columbia Business School Research Paper No. 16-60. Available at SSRN: https://ssrn.com/abstract=2829593

Mehmet Sekip Altug (Contact Author)

George Mason University ( email )

VA 22030
United States

Garrett Van Ryzin

Cornell Tech ( email )

2 W Loop Rd
New York, NY 10044
United States

Lyft, Inc. ( email )

San Francisco, CA

Register to save articles to
your library

Register

Paper statistics

Downloads
38
Abstract Views
174
PlumX Metrics