Trade disruptions, behavioral biases, and social influences: Can luxury sporting goods supply chains be immunized?

Sobhan Asian, Jian Wang and Geoff Dickson

Transportation Research Part E: Logistics and Transportation Review, 2020, vol. 143, issue C

Abstract: This paper studies a luxury sporting goods supply chain (LSGSC) experiencing trade disruption and market volatility. We propose a flexible trade credit contract with minimum order quantity (MOQ) and design a coordination mechanism between a supplier and a loss-averse wholesaler. We extend our study to a multi-tiered product setting and examine the impacts of social influences and loss aversion on SC decisions and channel coordination. Given the gloomy post-Covid-19 economic prospects in an era of reglobalization, this study urges trade associations and business leaders to immunize their SCs by considering behavioral biases and social influences and revisiting their contractual obligations.

Keywords: Trade disruption; Trade credit contract; Supply chain coordination; Social influence; Behavioral bias; Luxury sporting goods; Reglobalization (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (8)

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DOI: 10.1016/j.tre.2020.102064

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