Customer and retailer rebates under risk aversion

International Journal of Production Economics

Volumn 133, Issue 2, 2011, Pages 736-750

  Caliskan Demirag, Ozgun ^a   Chen, Youhua ^b   Li, Jianbin ^c  

^a Penn State Erie   (United States)

^b CHINESE UNIVERSITY OF HONG KONG   (Hong Kong)

^c HUAZHONG UNIVERSITY OF SCIENCE AND TECHNOLOGY   (China)

Author keywords

Channel promotions; Conditional Value at Risk (CVaR); Customer rebates; Nash equilibrium; Retailer rebates; Risk aversion

Indexed keywords

CHANNEL PROMOTIONS; CONDITIONAL-VALUE-AT-RISK (CVAR); CUSTOMER REBATES; NASH EQUILIBRIUM; RETAILER REBATES; RISK AVERSION;

CUSTOMER SATISFACTION; GAME THEORY; MANUFACTURE; PROFITABILITY; RISK PERCEPTION; SUPPLY CHAINS; VALUE ENGINEERING;

SALES;

EID: 80051550583     PISSN: 09255273     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.ijpe.2011.06.002     Document Type: Article

References (31)

1. V. Agrawal, and S. Seshadri Impact of uncertainty and risk aversion on price and order quantity in the newsvendor problem Manufacturing and Service Operations Management 2 4 2000 410 423
2. S. Ahmed, U. Cakmak, and A. Shapiro Coherent risk measures in inventory problems European Journal of Operational Research 182 1 2007 226 238 (Pubitemid 46561149)
3. F.J. Arcelus, S. Kumar, and G. Srinivasan Pricing and rebate policies for the newsvendor problem in the presence of a stochastic redemption rate International Journal of Production Economics 107 2 2007 467 482 (Pubitemid 46528169)
4. R.W. Ault, R. Beard, D. Laband, and R. Saba Rebates, inventories, and intertemporal price discrimination Economic Inquiry 38 4 2000 570 578
5. Aydin, G., Porteus, E.L., 2009. Manufacturer-to-retailer versus manufacturer-to-consumer rebates in a supply chain. In: Agarwal, N., Smith, S. (Eds.), Retail Supply Chain Management. Springer, vol. 122, pp. 237-270.
6. A.O. Brown, and C.S. Tang The impact of alternative performance measures on single-period inventory policy Journal of Industrial and Management Organization 2 3 2006 297 318
7. M. Busse, J. Silva-Risso, and F. Zettelmeyer $1,000 cash back: the pass-through of auto manufacturer promotions The American Economic Review 96 4 2006 1253 1270
8. G. Cachon, and S. Netessine Game theory in supply chain analysis D. Simchi-Levi, D. Wu, Z.-J. Shen, Handbook of Quantitative Supply Chain Analysis: Modeling in the eBusiness Era 2004 Springer
9. F.Y. Chen, M. Xu, and Z.G. Zhang A risk-averse newsvendor model under the CVaR decision criterion Operations Research 57 4 2009 1040 1044
10. X. Chen, C.-L. Li, B.-D. Rhee, and D. Simchi-Levi The impact of manufacturer rebates on supply chain profits Naval Research Logistics 54 6 2007 667 680 (Pubitemid 47395712)
11. Y. Chen, S. Moorthy, and Z.J. Zhang Price discrimination after the purchase: rebates as state-dependent discounts Management Science 51 7 2005 1131 1140 (Pubitemid 41344645)
12. L. Cheng, Z. Wan, and G. Wang Bilevel newsvendor models considering retailer with CVaR objective Computers and Industrial Engineering 57 1 2009 310 318
13. S.-H. Cho, K.F. McCardle, and C.S. Tang Optimal pricing and rebate strategies in a two-level supply chain Production and Operations Management 18 4 2009 426 446
14. L. Eeckhoudt, C. Gollier, and H. Schlesinger The risk-averse (and prudent) newsboy Management Science 41 5 1995 786 794
15. X. Gan, S.P. Sethi, and H. Yan Coordination of supply chains with risk-averse agents Production and Operations Management 13 2 2004 135 149 (Pubitemid 39374550)
16. E. Gerstner, and J.D. Hess A theory of channel price promotions The American Economic Review 81 4 1991 872 886
17. E. Gerstner, and J.D. Hess Pull promotions and channel coordination Marketing Science 14 1 1995 43 60
18. S.M. Gilpatric Slippage in rebate programs and present-biased preferences Marketing Science 28 2 2009 229 238
19. J. Gotoh, and Y. Takano Newsvendor solutions via conditional value-at-risk minimization European Journal of Operations Research 179 1 2007 80 96 (Pubitemid 44809560)
20. M. Khouja, and J. Zhou The effect of delayed incentives on supply chain profits and consumer surplus Production and Operations Management 19 2 2009 172 197
21. H. Kurata, and X. Yue Trade promotion mode choice and information sharing in fashion retail supply chains International Journal of Production Economics 114 2 2008 507 519
22. H.S. Lau The newsboy problem under alternative optimization objectives Journal of the Operational Research Society 31 6 1980 525 535
23. Q. Lu, and S. Moorthy Coupons versus rebates Marketing Science 26 1 2007 67 82
24. G. Martin-Herran, S. Sigue, and G. Zaccour The dilemma of pull and push-price promotions Journal of Retailing 19 2 2010 172 197
25. G.C. Pflug A value-of-information approach to measuring risk in multi-period economic activity Journal of Banking Finance 30 2 2006 695 715 (Pubitemid 43257156)
26. R.T. Rockafellar, and S. Uryasev Optimization of conditional value-at-risk Journal of Risk 2 2000 21 41
27. M.E. Schweitzer, and G.P. Cachon Decision bias in the newsvendor problem with a known demand distribution: experimental evidence Management Science 46 3 2000 404 420 (Pubitemid 30596823)
28. C. Wang The loss-averse newsvendor game International Journal of Production Economics 124 2 2010 448 452
29. C. Wang, and S. Webster The loss-averse newsvendor problem Omega, The International Journal of Management Science 37 1 2009 93 105
30. W.K. Wong, J. Qi, and S.Y.S. Leung Coordinating supply chains with sales rebate contracts and vendor-managed inventory International Journal of Production Economics 120 1 2009 151 161
31. S. Yang, C.L. Munson, and B. Chen Using MSRP to enhance the ability of rebates to control distribution channels European Journal of Operational Research 205 1 2010 127 135