Pricing and allotment in a sea-cargo supply chain with reference effect: a dynamic game approach
type: Item
instance of: scholarly article
title: Pricing and allotment in a sea-cargo supply chain with reference effect: a dynamic game approach
zbMATH Open document ID: 1264.91092
DOI: 10.1155/2013/162563
author: Govindan Kannan
author: Jian Li
author: Xiukun Zhao
author: Xiao-Li Yang
author: Lei Xu
published in: Discrete Dynamics in Nature and Society
publication date: 2013-06-13T00:00:00Z
review text: Summary: The contract between the carrier and forwarder is a long-term issue, and the repeated contract business makes the forwarder develop a reference point based on the contract prices, and this reference effect, to a large extent, affects the forwarder's contract purchasing decisions. Based on that, this paper introduces the reference effect in the sea-cargo supply chain and studies a multiple-period contract problem between the carrier and the forwarder. It is found that when the capacity price in the spot market is less than the forwarder's willingness-to-pay, the forwarder's contract purchasing decision is not affected by the reference effect, only by the capacity price in the spot market, and the multiple-period contract problem can be simplified into a single-period game. In addition, the carrier's optimal contract wholesale price approaches the capacity price in the spot market. Although, the forwarder's contract purchasing decision depends upon the reference effect, it is difficult to derive the closed-form solution. Moreover, because of the risk in the spot market, the carrier tends to sell his/her capacity in the contract market. Finally, we employ the numerical simulation to study the carrier's contract pricing decisions and the forwarder's capacity purchasing decisions in two cases.
Mathematics Subject Classification ID: 91B74
Mathematics Subject Classification ID: 91B40
Mathematics Subject Classification ID: 91B38
Mathematics Subject Classification ID: 91A80
Mathematics Subject Classification ID: 91A25
zbMATH DE Number: 6175044
Wikidata QID: Q58921380
MaRDI profile type: Publication
full work available at URL: https://doi.org/10.1155/2013/162563
OpenAlex ID: W2034756653
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description: scientific article; zbMATH DE number 6175044