Endogenous Commitments: Implications for Supply Chains

Narendra Singh
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Narendra Singh: Nazarbayev University, Graduate School of Business

No 2026/03, Working Papers from Nazarbayev University, Graduate School of Business

Abstract: While a centralized firm selling durable products benefits from committing to future prices, it remains unclear whether this conclusion extends to a decentralized supply chain where a manufacturer distributes durable products through a retailer. Further, previous research on commitments in decentralized supply chains is sparse and assumes exogenous commitments. To address this gap, we examine the implications of commitment decisions in a supply chain where a manufacturer and a retailer endogenously decide whether to commit to future wholesale and retail prices, respectively.

Keywords: durable products; strategic consumers; time inconsistency; endogenous commitment; supply chain management (search for similar items in EconPapers)
Pages: 73 pages
Date: 2026-03
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