Pricing Analysis of Risk-Averse Supply Chains with Supply Disruption Considering Reference Price Effect
This paper examines the impact of the reference price effect on pricing decisions in a risk-averse supply chain with a dual-sourcing procurement strategy, particularly during single-sourcing supply disruption. To analyze supply chain pricing decisions under non-disrupted and disrupted scenarios, we...
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| Format: | Article |
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MDPI AG
2025-03-01
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| Series: | Systems |
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| Online Access: | https://www.mdpi.com/2079-8954/13/3/188 |
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| author | Gui-Hua Lin Ruimin Dai Yu-Wei Li Qi Zhang |
| author_facet | Gui-Hua Lin Ruimin Dai Yu-Wei Li Qi Zhang |
| author_sort | Gui-Hua Lin |
| collection | DOAJ |
| description | This paper examines the impact of the reference price effect on pricing decisions in a risk-averse supply chain with a dual-sourcing procurement strategy, particularly during single-sourcing supply disruption. To analyze supply chain pricing decisions under non-disrupted and disrupted scenarios, we innovatively use semivariance as a risk measure to effectively avoid the limitations of the traditional variance approach and integrate it into Stackelberg game models. Based on these models, we analyze the impact of the reference price effect, risk aversion, and single-sourcing supply disruption on supply chain members’ pricing decisions. The main findings include the following: the single-sourcing supply disruption degree may increase the price of non-disrupted products and then increase the non-disrupted supplier’s utility; the strength of the reference price effect positively influences retailer utility but negatively impacts product pricing for supply chain members; the pricing decisions and utility of supply chain members are influenced by their risk aversion, and supply chain members with higher risk aversion adopt more conservative pricing strategies and consequently obtain lower utility; and equilibrium decisions generally demonstrate a degree of robustness. These insights may help supply chain managers respond rationally to supply disruptions and properly develop pricing strategies by taking into account the reference price effect. |
| format | Article |
| id | doaj-art-a1332a9f93ae4b01809688516bcba30f |
| institution | DOAJ |
| issn | 2079-8954 |
| language | English |
| publishDate | 2025-03-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Systems |
| spelling | doaj-art-a1332a9f93ae4b01809688516bcba30f2025-08-20T02:43:03ZengMDPI AGSystems2079-89542025-03-0113318810.3390/systems13030188Pricing Analysis of Risk-Averse Supply Chains with Supply Disruption Considering Reference Price EffectGui-Hua Lin0Ruimin Dai1Yu-Wei Li2Qi Zhang3School of Management, Shanghai University, Shanghai 200444, ChinaSchool of Management, Shanghai University, Shanghai 200444, ChinaSchool of Management, Shanghai University, Shanghai 200444, ChinaSchool of Management, Qufu Normal University, Rizhao 276800, ChinaThis paper examines the impact of the reference price effect on pricing decisions in a risk-averse supply chain with a dual-sourcing procurement strategy, particularly during single-sourcing supply disruption. To analyze supply chain pricing decisions under non-disrupted and disrupted scenarios, we innovatively use semivariance as a risk measure to effectively avoid the limitations of the traditional variance approach and integrate it into Stackelberg game models. Based on these models, we analyze the impact of the reference price effect, risk aversion, and single-sourcing supply disruption on supply chain members’ pricing decisions. The main findings include the following: the single-sourcing supply disruption degree may increase the price of non-disrupted products and then increase the non-disrupted supplier’s utility; the strength of the reference price effect positively influences retailer utility but negatively impacts product pricing for supply chain members; the pricing decisions and utility of supply chain members are influenced by their risk aversion, and supply chain members with higher risk aversion adopt more conservative pricing strategies and consequently obtain lower utility; and equilibrium decisions generally demonstrate a degree of robustness. These insights may help supply chain managers respond rationally to supply disruptions and properly develop pricing strategies by taking into account the reference price effect.https://www.mdpi.com/2079-8954/13/3/188supply disruptiondual sourcingreference price effectrisk aversionsemivariance |
| spellingShingle | Gui-Hua Lin Ruimin Dai Yu-Wei Li Qi Zhang Pricing Analysis of Risk-Averse Supply Chains with Supply Disruption Considering Reference Price Effect Systems supply disruption dual sourcing reference price effect risk aversion semivariance |
| title | Pricing Analysis of Risk-Averse Supply Chains with Supply Disruption Considering Reference Price Effect |
| title_full | Pricing Analysis of Risk-Averse Supply Chains with Supply Disruption Considering Reference Price Effect |
| title_fullStr | Pricing Analysis of Risk-Averse Supply Chains with Supply Disruption Considering Reference Price Effect |
| title_full_unstemmed | Pricing Analysis of Risk-Averse Supply Chains with Supply Disruption Considering Reference Price Effect |
| title_short | Pricing Analysis of Risk-Averse Supply Chains with Supply Disruption Considering Reference Price Effect |
| title_sort | pricing analysis of risk averse supply chains with supply disruption considering reference price effect |
| topic | supply disruption dual sourcing reference price effect risk aversion semivariance |
| url | https://www.mdpi.com/2079-8954/13/3/188 |
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