Risk-Averse Suppliers’ Optimal Pricing Strategies in a Two-Stage Supply Chain

Rui Shen, Zhiqing Meng, Xinsheng Xu and Min Jiang

Discrete Dynamics in Nature and Society, 2013, vol. 2013, 1-11

Abstract:

Risk-averse suppliers’ optimal pricing strategies in two-stage supply chains under competitive environment are discussed. The suppliers in this paper focus more on losses as compared to profits, and they care their long-term relationship with their customers. We introduce for the suppliers a loss function, which covers both current loss and future loss. The optimal wholesale price is solved under situations of risk neutral, risk averse, and a combination of minimizing loss and controlling risk, respectively. Besides, some properties of and relations among these optimal wholesale prices are given as well. A numerical example is given to illustrate the performance of the proposed method.

Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:hin:jnddns:937141

DOI: 10.1155/2013/937141

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