huanghe@cqu.edu.cn He Huang received the Ph.D. degree in management science from Tsinghua University, Beijing, China in 2006. He is now a Professor with School of Economics and Business Administration, Chongqing University, Chongqing, China. He has contributed more than 20 journal articles to professional journals. His current research interests include procurement auction, bargaining and contract. xuhy03@mails. tsinghua. edu. cn Hongyan Xu received the Ph.D. degree in management science from Tsinghua University,Beijing, China in 2009. She is an Assistant Professor with School of Economics and Business Administration, Chongqing University, Chongqing, China. Her current research interests include supply chain coordination, contract and incentive theory. jchen@mail. tsinghua. edu. cn Jian Chen received the B.Sc. degree in Electrical Engineering from Tsinghua University, Beijing, China, in 1983, and the M.Sc. and the Ph.D. degree both in Systems Engineering from the same University in 1986 and 1989, respectively.