Impacts of power structure on supply chains with uncertain demand

Production and Operations Management

Volumn 22, Issue 5, 2013, Pages 1232-1249

  Shi, Ruixia ^a   Zhang, Jun ^b   Ru, Jun ^c  

^a UNIVERSITY OF RICHMOND   (United States)

^b UNIVERSITY OF TEXAS AT DALLAS   (United States)

^c UNIVERSITY AT BUFFALO   (United States)

Author keywords

demand uncertainty; power structure; pricing, game theory; supply chain

Indexed keywords

EID: 84884949179     PISSN: 10591478     EISSN: 19375956     Source Type: Journal    
DOI: 10.1111/poms.12002     Document Type: Article

References (74)

1. Agrawal, V., S. Seshadri,. 2000. Impact of uncertainty and risk aversion on price and order quantity in the newsvendor problem. Manuf. Ser. Oper. Manag. 2 (4): 410-423.
2. Ailawadi, K. L., N. Borin, P. W. Farris,. 1995. Market power and performance: A cross-industry analysis of manufacturers and retailers. J. Retail. 71 (3): 211-248.
3. Alberini, A., M. Filippini,. 2011. Response of residential electricity demand to price: The effect of measurement error. Energy. Econ. 33 (5): 889-895.
4. Alderson, W., 1950. Survival and adjustment in organized behavior systems., R. Cox, W. Alderson, eds. Theory in Marketing, Richard D. Irwin, Homewood, IL, 65-87.
5. Anupindi, R., Y. Bassok,. 1999. Centralization of stocks: Retailers vs. manufacturer. Manage. Sci. 45 (2): 178-191.
6. Anupindi, R., L. Jiang,. 2008. Capacity investment under postponement strategies, market competition, and demand uncertainty. Manage. Sci. 54 (11): 1876-1890.
7. Bloom, P. N., V. G. Perry,. 2001. Retail power and supplier welfare: The case of Walmart. J. Retailing 77 (3): 379-396. (Pubitemid 33633503)
8. Bowman, R., 1997. Should you just say no to Wal-Mart? Distribution 96: 52-54.
9. Cachon, G., 2004. The allocation of inventory risk in a supply chain: Push, pull and advanced purchase discount contracts. Manage. Sci. 50 (2): 222-238.
10. Cachon, G., C. Terwiesch,. 2009. Matching Supply with Demand, Irwin McGraw-Hill, Boston.
11. Cartwright, D., 1959. A Field Theoretical Conception of Power, University of Michigan, Ann Arbor, MI.
12. Choi, C. S., 1991. Price competition in a channel structure with a common retailer. Market. Sci. 10 (4): 110-129.
13. Christman, E., 2003. Indie retailers sue Best Buy. Billboard (August 23), 5-7.
14. Clarke, I., 2000. Retailer power, competition and local consumer choice in the UK grocery sector. Eur. J. Market. 34 (8): 975-1002.
15. Cotterill, R. W., W. P. Putsis,. 2001. Do models of vertical strategic interaction for national and store brands meet the market test? J. Retailing 77 (1): 83-109. (Pubitemid 33668952)
16. Dahl, R., 1957. The concept of power. Behav. Sci. 2 (3): 201-215.
17. Debo, L., J. Sun,. 2004. Repeatedly selling to the newsvendor in fluctuating markets. Working paper, GSIA, Carnegie Mellon University, Pittsburgh, PA.
18. Dergiades, T., L. Tsoulfidis,. 2008. Estimating residential demand for electricity in the United States, 1965-2006. Energy Econ. 30 (5): 2722-2730.
19. Dobson, P., M. Waterson,. 1999. Retailer power: Recent developments and policy implications. Econ. Policy. 14 (28): 133-164.
20. Dong, L., N. Rudi,. 2004. Who benefits from transshipment? Exogenous vs. endogenous wholesale prices. Manage. Sci. 50 (5): 645-657.
21. Dong, L., K. Zhu,. 2007. Two-wholesale-price contracts: Push, pull, and advance-purchase discount contracts. Manuf. Ser. Oper. Manag. 9 (3): 291-311.
22. Dukes, A. J., E. Gal-Or, K. Srinivasan,. 2006. Channel bargaining with retailer asymmetry. J. Market. Res. 43 (1): 84-97. (Pubitemid 43331606)
23. Dukes, A. J., T. Geylani, K. Srinivasan,. 2009. Strategic assortment reduction by a dominant retailer. Market. Sci. 28 (2): 309-319.
24. Eeckhoudt, L., C. Gollier, H. Schlesinger,. 1995. The risk averse (and prudent) newsboy. Manage. Sci. 41 (5): 786-794.
25. El-Ansary, A., L. Stern,. 1972. Power measurement in the distribution channel. J. Market. Res. 9 (1): 47-52.
26. Emerson, R., 1962. Power-dependence relations. Amer. Soc. Rev. 27 (1): 31-41.
27. Ertek, G., P. M. Griffin,. 2002. Supplier- and buyer-driven channels in a two-stage supply chain. IIE Trans. 34 (8): 691-700. (Pubitemid 34520026)
28. Farris, P., K. Ailawadi,. 1992. Retailer power: Monster or mouse? J. Retailing 68 (4): 351-369.
29. Ferguson, M., 2003. When to commit in a serial supply chain with forecast updating. Nav. Res. Logist. 50 (8): 917-936.
30. Ferguson, M., G. DeCroix, P. Zipkin,. 2005. Commitment decisions with partial information updating. Nav. Res. Logist. 52 (8): 780-795. (Pubitemid 43082161)
31. Fishman, C., 2003. The Wal-Mart you don't know. Fast Company, Boston, Dec., Issue 77, 68-80.
32. Gerchak, Y., Y. Wang,. 2004. Revenue-sharing vs. wholesale-price contracts in assembly systems with random demand. Prod. Oper. Manag. 13 (1): 23-33. (Pubitemid 39374557)
33. Geylani, T., A. J. Dukes, K. Srinivasan,. 2007. Strategic manufacturer response to a dominant retailer. Market. Sci. 26 (2): 164-178.
34. Gray, J., B. Tomlin, A. Roth,. 2009. Outsourcing to a powerful contract manufacturer: The effect of learning-by-doing. Prod. Oper. Manag. 18 (5): 487-505.
35. Gu, Z., Y. Chen,. 2004. Bargaining and information sharing in distribution channels. Working paper, Stern School of Business, New York University, New york.
36. Hauser, J., B. Wernerfelt,. 1989. The competitive implications of relevant-set/response analysis. J. Market. Res. 26 (4): 391-405.
37. Hoch, S., B. Kim, A. Montgomery, P. Rossi,. 1995. Determinants of store-level price elasticity. J. Market. Res. 32 (1): 17-29.
38. Hogan, S., P. Jackson,. 2012. A critique of Wolak's evaluation of the NZ electricity market: The incentive to exercise market power with elastic demand and transmission loss. New Zealand Econ. Papers. 46 (1): 11-23.
39. Inderst, R., G. Shaffer,. 2007. Retail mergers, buyer power and product variety. Econ. J. 117 (516): 45-67. (Pubitemid 46128746)
40. Inderst, R., C. Wey,. 2007. Buyer power and supplier incentives. Eur. Econ. Rev. 51 (3): 647-667. (Pubitemid 46404752)
41. Iyer, G., J. M. Villas-Boas,. 2003. A bargaining theory of distribution channels. J. Market. Res. 40 (1): 80-100. (Pubitemid 36288991)
42. Jeuland, A. P., S. M. Shugan,. 1983. Managing channel profits. Market. Sci. 2 (3): 239-272.
43. Jiang, L., Y. Wang,. 2010. Supplier competition in decentralized assembly systems with price-sensitive and uncertain demand. Manuf. Ser. Oper. Manag. 12 (1): 93-101.
44. Kanell, M. E., 2005. Welcome to Wal-Mart's world. The Atlanta Journal-Constitution, Feb. 20.
45. Karlin, S., C. R. Carr,. 1962. Prices and optimal inventory policy. K. J. Arrow, ed. Studies in Applied Probability and Management Science. Stanford University Press, Stanford, CA, 159-172.
46. Krishnan, T. V., H. Soni,. 1997. Guaranteed profit margins: A demonstration of retailer power. Int. J. Res. Market. 14 (1): 35-56. (Pubitemid 127343129)
47. Lariviere, M., E. Porteus,. 2001. Selling to the newsvendor: An analysis of price-only contract. Manuf. Ser. Oper. Manag. 3 (4): 293-305. (Pubitemid 33664115)
48. Lee, E., R. Staelin,. 1997. Vertical strategic interaction: Implications for channel pricing strategy. Market. Sci. 16 (3): 185-207.
49. Majumder, P., A. Srinivasan,. 2006. Leader location, cooperation, and coordination in serial supply chains. Prod. Oper. Manag. 15 (1): 22-39. (Pubitemid 43835648)
50. McGuire, T. W., R. Staelin,. 1983. An industry equilibrium analysis of downstream vertical integration. Market. Sci. 2 (2): 161-191.
51. Messinger, P. R., C. Narasimhan,. 1995. Has power shifted in the grocery channel? Market. Sci. 14 (2): 189-223.
52. Mills, E., 1959. Uncertainty and price theory. The Quart. J. Econ. 73 (1): 116-130.
53. Moorthy, K., 1987. Managing channel profits: Comment. Market. Sci. 6 (4): 375-379.
54. Moorthy, K., P. Fader,. 1990. Strategic interaction within a channel., L. Pellegrini, S. Reddy, eds., Retail and Marketing Channels: Economic and Marketing Perspectives on Producer Distributor Relationships, Routledge, New York, 84-99.
55. Mottner, S., S. Smith,. 2009. Wal-Mart: Supplier performance and market power. J. Bus. Res. 62 (5): 535-541.
56. Mulhern, F., R. Leone,. 1991. Implicit price bundling of retail products: A multiproduct approach to maximizing store profitability. J. Market. 55 (4): 63-76.
57. Nagarajan, M., G. Sošic̈,. 2009. Coalition stability in assembly models. Oper. Res. 57 (1): 131-145.
58. Perakis, G., G. Roels,. 2007. The price of anarchy in supply chains: Quantifying the efficiency of price-only contracts. Manage. Sci. 53 (8): 1249-1268. (Pubitemid 351159603)
59. Petruzzi, N., M. Dada,. 1999. Pricing and the newsvendor problem: A review with extensions. Oper. Res. 47 (2): 183-194.
60. Raju, J., Z. J. Zhang,. 2005. Channel coordination in the presence of a dominant retailer. Market. Sci. 24 (2): 254-262. (Pubitemid 40816481)
61. Rao, U., A. Scheller-Wolf, S. Tayur,. 2000. Development of a rapid-response supply chain at caterpillar. Oper. Res. 48 (2): 189-204.
62. Ruffle, B., 2006. Buyer Countervailing Power: A Survey of the Theory and Experimental Evidence. Available at http://ssrn.com/abstract=894664 (accessed date January 11, 2013).
63. Shaffer, G., 2001. Bargaining in distribution channels with multiproduct retailers. Working Paper, Simson School of Business, University of Rochester.
64. Shugan, S., 1985. Implicit understandings in channels of distribution. Manage. Sci. 31 (4): 435-460.
65. Smith, G., 2002. War of the superstores: Wal-Mart is trouncing the locals, but they're not giving up. Business Week, September 23, 60-60.
66. Sudhir, K., 2001. Structural analysis of manufacturer pricing in the presence of a strategic retailer. Market. Sci. 20 (3): 244-264.
67. Taylor, T. A., 2006. Sale timing in a supply chain: When to sell to the retailer. Manuf. Ser. Oper. Manag. 8 (1): 23-42.
68. Tellis, G., 1988. The price elasticity of selective demand: A meta-analysis of econometric models of sales. J. Market. Res. 25 (4): 331-341.
69. Useem, J., 2003. One nation under War-Mart. Fortune, March 3, 65-78.
70. Van Riper, T., 2007. The War-Mart squeeze. Forbes, April 24.
71. Wen, J., 2001. Market power in grocery retailing: Assessing the evidence for canada. Prepared for the Competition Bureau, Canada.
72. Westley, G., 1981. The Residential and Commercial Demand for Electricity in Paraguay. Inter-American Development Bank, Economic and Social Development Department, Country Studies Division, Project Methodology Unit.
73. Xiao, N., J. Zarnikau, P. Damien,. 2007. Testing functional forms in energy modeling: An application of the Bayesian approach to US electricity demand. Energy. Econ. 29 (2): 158-166. (Pubitemid 46211054)
74. Zhang, J., 2005. Transshipment and its impact on supply chain members' performance. Manage. Sci. 51 (10): 1534-1539. (Pubitemid 41544994)