In the circumstance that unexpected events lead to information asymmetry of sales costs, supplier risk aversion and stochastic price, this paper discusses internal law using an emergency quantity discount contract coordinate supply chain. First, Conditional Value at Risk (CVaR) model under condition symmetry is constructed. addition, extended game CVaR asymmetric costs solved. After that, simul...

We exploit a unique merchant-level dataset from the monopoly payment card network in China to study payment card pricing. We develop hypotheses associating payment card pricing to card penetration rate, profitability and fraud risk. Our empirical analysis uses the variations in those three factors across industries to show that the card network charges a higher merchant discount for industries ...

The choice between quantity and price in order to stabilize collusion is modeled here. It is shown that this relocates the prisoners’ dilemma backwards, from the market stage to the stage where the market variable is chosen in order to sustain collusion, and where discount rates appear as the payo¤s. Likewise, a prisoners’ dilemma arises also when both the market variable and the type of behavi...

We study an infinite horizon game in which pairs of players connected by a network are randomly matched to bargain over a unit surplus. We prove that for each discount factor all equilibria are payoff equivalent. The equilibrium payoffs and the set of equilibrium agreement links converge as players become increasingly patient. We construct an algorithm that determines the limit equilibrium payo...

In this article, we develop an integrated supplier–buyer inventory model with the assumption that the market demand is sensitive to the retail price and the supplier adopts a trade credit policy. The trade credit policy discussed in this paper is a ‘‘two-part’’ strategy: cash discount and delayed payment. That is, if the buyer pays within M1, the buyer receives a cash discount; otherwise, the f...

In the present paper, the effect of income elasticity on demand has been considered and the buyer’s optimal special order quantity and optimal time has been determined, when supplier reduces sale price then buyer may offer a discount to push his sale to increase his profit margin. Income elasticity effect in inventory analysis has been introduced to obtain the gain equation to find the optimal ...

We investigate the choice of market variable, price or quantity, of an optimal implicit cartel. If the discount factor is high, the cartel can realize the monopoly pro...t in both cases. Otherwise, it is optimal for the cartel to rely on quantities in the collusive phase if goods are substitutes and prices if goods are complements. The reason is that this minimizes the gains from deviations fro...