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About Wholesale-Price Contract of Supply Chain With Information Gathering
This document summarizes a research paper that analyzes a wholesale-price contract model of a supply chain where the retailer can acquire information about their selling costs. There are three main findings: 1) There is an upper bound on the cost of information gathering, above which it is not optimal for the supplier to induce the retailer to gather information. 2) The cost of information gathering impacts the order quantity and wholesale price set in the contract. Higher information costs decrease order quantities. 3) The supplier's profits decrease as information gathering costs increase, while the retailer's profits are ambiguous depending on the cost and information structure.
Detailed Information
| Author: | ['Caterina Cozlovschi Bondarenco'] |
|---|---|
| Publication Year: | 2017 |
| Pages: | 13 |
| Language: | English |
| Format: | |
| Price: | FREE |
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