Title :
Pricing and replenishment strategies in supply chains with competing loss averse retailers
Author :
Suo, H. ; Wang, J. ; Jin, Y.
Author_Institution :
Dept. of Autom., Tsinghua Univ., Beijing, China
Abstract :
This paper investigates a single-period supply chain model with competing loss-averse retailers who decide their pricing and order quantity simultaneously. Firstly, the unimodality property of the retailer´s expected utility and the uniqueness property of its decisions are studied under non-competing circumstances. In comparison to a risk-neutral retailer, a loss-averse retailer orders less and charges a higher price under some conditions. Then, the competing impact among the loss-averse retailers is considered. After investigating the equilibrium behavior of the decentralized supply chain, a pull contract is constructed to coordinate the decentralized supply chain, which allows the decentralized chain to perform as well as a centralized one.
Keywords :
pricing; supply chain management; supply chains; competing loss averse retailer; decentralized supply chain; pricing strategy; pull contract; replenishment strategy; risk-neutral retailer; single-period supply chain model; unimodality property; Automation; Books; Contracts; Decision making; Marketing and sales; Microcomputers; Pricing; Supply chain management; Supply chains; Utility theory;
Conference_Titel :
Decision and Control, 2004. CDC. 43rd IEEE Conference on
Conference_Location :
Nassau
Print_ISBN :
0-7803-8682-5
DOI :
10.1109/CDC.2004.1428813