The director of purchasing and financial systems at The University of Western Ontario notices that paper pulp prices are rising and realizes that both of the University's paper suppliers would like to pass along increasing costs. Moore is forced into a precarious situation when one of the suppliers unilaterally raises prices despite a fixed contract. Moore faces a range of options, from placidly accepting this increase to taking legal action. The case demonstrates issues of bargaining (including strategic signaling) and control.
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