An economic model in which a supplier is paid for achieving a pre-specified output-based metric. An output-based model shifts risk to the supplier for achieving the output, but requires both a buyer and a supplier to work together to achieve the outcome. A well-structured agreement compensates a supplier's higher risk with a higher reward. See also Output or Output-Based Metric.
An economic model in which a supplier is paid for achieving a pre-specified output-based metric. An output-based model shifts risk to the supplier for achieving the output, but requires both a buyer and a supplier to work together to achieve the outcome. A well-structured agreement compensates a supplier's higher risk with a higher reward. See also Output or Output-Based Metric.