在国外选了博弈论，发现完全不会。以下是这次的作业，有会做的嘛？会的话，请联系superzzc@126.com，酬金100刀。谢谢

AnOutsourcing Relationship

       The Agreement

A client and an outsourcing serviceprovider enter into a 10 year outsourcing agreement. The agreement specifiesthat the service provider will provide a (well-defined) product to the client.The client agrees to pay a specific price per unit for the product. The productprice is specified to decline each year over the 10 years of the agreement. Thecontract has an option for renewal at the end of the 10 year period but alsoallows for termination for convenience during the 10 year term.

As part of the agreement, the partiesspecify performance measures that the service provider must meet whendelivering the product. These measures include items like time between order ofproduct and delivery of product samples for inspection by the client, timebetween approval of samples and delivery of final product, a maximum failurerate of product and the like. Interestingly, while performance measures arespecified, no payments are associated with meeting or failing to meet theperformance targets. In particular, if the service provider over-performsrelative to the targets, there are no bonus payments; if the service providerunder-performs relative to the targets, there are no payment reductions.  

Both the client and service provider acknowledgeat the time of the agreement that cost reducing innovations in productproduction will be important for the service provider to meet future pricetargets while maintaining its ambitious profit and growth goals. (Both alsoacknowledge that the price targets are not so onerous that the service providerwould be forced into bankruptcy without the innovations). The client’sparticipation in the innovation process will be valuable since the clientproduced the product in-house for many years and is extremely familiar with theproduction process. Again, however, the agreement specifies no gain sharingarrangement should the client participate in the innovation process and anyproduction innovations will be the sole property of the provider.  

       The Outcome

1.      The service provider over performs on quality, reduceslead times and turnaround (relative to the targets specified in the agreement) onproduct production and provides increased flexibility to the client aroundordering.

2.     Theclient cooperates in production process innovation. The service provider andclient jointly develop innovations that allow the service provider to lowerproduction cost and so meet the price targets while maintaining its profittargets. These innovations also make it possible for the service provider toattract new clients.

The above is a brief description of acase developed for the Centre for Outsourcing Research and Education (CORE).The question that the CORE research team needed to address was, “Is this typeof outsourcing arrangement something we should be promoting as a new model foroutsourcing or is this a special case? If the latter, what are the specialcircumstances that make it work?” The objective here is to see what gametheoretic reasoning can contribute to answering these questions. To structureyour thinking about this problem, address the questions below.

1.     Suppose the client andservice provider were described by a one-shot game in which the client couldchoose either to assist with innovation or not assist with innovation and theservice provider could choose either to over perform relative to targets or notover perform relative to targets. Provide the payoff matrix for this game andrank the different outcomes for both the client and service provider given thecontract described above and  assumingthat it is costly for the client to assist with innovation and costly for theservice provider to over perform. Explain why you described the payoff matrixthe way you did. What is the Nash equilibrium of the game? Explain. How does theNash equilibrium outcome compare to the observed outcome?

2.     Suppose that werecognize that the game between the client and the service provider is arepeated game, not just in the sense that the original agreement lasts for 10years, but also because the two parties can renew (or not) the contract. Inaddition, if they don’t renew the contract, the client will still need the sameset of services and the service provider will need to provide services toclients in order to remain in business. Can the fact that the two parties havean on-going relationship (and on-going business activity) help us understandthe observed cooperation between the service provider and the client? Explain.What would be required, in terms of costs and benefits of cooperation versusthe costs and benefits of non-cooperation, in order to support (assist withinnovation, over perform relative to targets) as an equilibrium of the repeatedgame?

3.     Based on your analysis,if you had to predict characteristics of the client/service provider match thatwould make cooperation by both parties desirable, what would thosecharacteristics be? (Think of this in terms of characteristics such as theimportance of the service to the client, the cost to the client of assistingwith innovation, the importance of innovation to the service provider foron-going value creation, the importance of the client to the service providerfor on-going value and future business and the like).