A dynamic price-only contract: Exact and asymptotic results.

We consider a two echelon supply chain with a single seller and a single buyer. We propose what we call a generalized price-only contract, which is a dynamic generalization of the simple wholesale price-only contract. We derive some interesting properties of this contract and relate them to well known issues such as double marginalization, relative power in a supply chain due to Stackelberg leadership, contract structure and commitment.