Commitment Cost and Contractual Coordination Machanism of Supply Chain under OEM

we can basically alter the equilibrium of coordination model of supply chain when considering commitment cost.If the cost is high enough,the unilateral payment is only a non-strict dominant strategy under either certain or uncertain commitment;when the imperfect information and all exogenous constraints leading to unilateral payment are excluded,incompatible commitment will cause conflicts.Taking supply chain with complementary suppliers for example,each supplier can improve his performance by offering a return policy to the assembler while the best contract depends on that offered by the other supplier.Moreover,the suppliers still have the rights to negotiate with each other to share their profits properly.There is a unique and stable equilibrium in which the optimal contract happens to fully coordinate the whole chain.Finally a numerical example has verified this conclusion.