Effect of fairness and overconfidence on pricing strategy of substitute bundles in a two-echelon supply chain

Sanchari Ganguly, Mithu Rani Kuiti, Pritha Das, M. Maiti
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引用次数: 2

Abstract

Cognitive biases - fairness and overconfidence, affect the decision-making process. The manufacturer/retailer prefers to sell the products as bundles in a duopoly market because it fetches more benefits to supply chain (SC) partners. Till now, none considered the pricing of substitute bundles, produced and sold at the manufacturer’s level. Considering these, the effects of the above cognitive behaviours on the bundlingpricing strategy are investigated. We develop several SC models, depending on the partner’s cognitive biases, with two manufacturers, producing substitute bundles of two uncorrelated items and selling through a retailer. Using the Stackelberg game, prices and profits are evaluated. It is observed that overconfidence does not increase retailer’s and overconfident - manufacturer’s profits but is beneficial for another rational manufacturer. Against the retailer’s fairness concern, her profit is augmented, but both manufacturers’ profits are adversely affected. The combined effect of both cognitive biases is adjuvant for the retailer but maleficent for manufacturers. Managerial insights are presented.
双层供应链中公平和过度自信对替代束定价策略的影响
认知偏见——公平和过度自信——会影响决策过程。制造商/零售商倾向于在双头垄断市场中捆绑销售产品,因为这样可以为供应链(SC)合作伙伴带来更多利益。到目前为止,还没有人考虑在制造商层面上生产和销售替代包的定价。考虑到这些,研究了上述认知行为对捆绑定价策略的影响。根据合作伙伴的认知偏差,我们开发了几个SC模型,有两个制造商,生产两种不相关产品的替代包,并通过零售商销售。利用Stackelberg博弈,对价格和利润进行评估。研究发现,过度自信并不会增加零售商和过度自信制造商的利润,反而对另一个理性制造商有利。在零售商的公平考虑下,她的利润增加了,但两家制造商的利润都受到了不利影响。这两种认知偏差的综合效应对零售商是辅助的,但对制造商是有害的。提出了管理见解。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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