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exibility (QF) contracts (Tsay, 1999), the b ackup agreements (Eppen and Iyer, 1997), the buy back or return policies (Emmons and Gilbert, 1998), the incentive mechanisms (Lee and Whang, 1999), the revenue sharing (RS) contracts (Cachon and Lariviere, 2000), the allocation rules (Cach on and Lariviere, 1999), and the quantity discounts (Weng, 1995).