CHANNEL BARGAINING WITH RISK-AVERSE RETAILER UNDER THE MULTIPLICATIVE DEMAND MODEL
MA Lijun, LIU Fangmei, ZHOU Wei, ZHAO Yingxue
Author information+
1. College of Management, Shenzhen University, Shenzhen 518060; 2. School of International Trade and Economics, University of International Business and Economics, Beijing 100029
We consider a channel bargaining problem. The
channel is made up with a risk-neutral manufacturer and a
risk-averse retailer who faces a stochastic price-dependent demand
in this paper. Using the Conditional Value-at-Risk (CVaR) as the
risk measure, we investigate the optimal equilibrium wholesale
price, selling price and order quantity and find a sufficient
condition for the equilibria of the unequal bargaining problem
under the multiplicative demand model.
Furthermore, when the demand noise follows a uniform distribution, it is shown that the manufacturer's profit share of the supply chain is
the same as the general demand situation, and it is
increasing with respect to the retailer's risk attitude and
unrelated to the form of the mean demand function.
MA Li-Jun
, LIU Fang-Mei
, ZHOU Wei. , {{custom_author.name_en}}.
CHANNEL BARGAINING WITH RISK-AVERSE RETAILER UNDER THE MULTIPLICATIVE DEMAND MODEL. Journal of Systems Science and Mathematical Sciences, 2011, 31(10): 1306-1316 https://doi.org/10.12341/jssms11710