It has been documented that retail gasoline prices respond more quickly to increases in wholesale price than to decreases. However, there is very little theoretical or empirical evidence identifying the market characteristics responsible for this behavior. This paper presents a new theoretical model of asymmetric adjustment that empirically matches observed retail gasoline price behavior better...

The standard model of pass-through in imperfectly competitive markets focuses on double marginalization of rents and highlights the importance of the curvature of demand curve. We develop a model of equilibrium prices in a supply chain with financing intermediaries to incorporate credit rationing faced by wholesale traders. The financing intermediaries help relax the quantitative credit limits ...

Hedonic price regressions have become a standard tool to study how prices of commodity goods are related to quality attributes. In this paper, we extend the traditional price specification by incorporating three sources of unobserved heterogeneity related to sellers, buyers, and matches between buyers and sellers. The extended price specification is estimated on a unique exhaustive dataset of n...

We integrate a retailer’s return policy and a supplier’s buyback policy within a modeling framework. In this setting, consumers decide whether to buy and then whether to return the product, the retailer sets the retail price, quantity, and refund price, and the supplier chooses the wholesale price and buyback price. Both the demand uncertainty and consumers’ valuation uncertainty are considered...

Retail gasoline prices are known to respond fairly slowly to wholesale price changes. This does not appear to be true for markets with Edgeworth price cycles. Recently, many retail gasoline markets in the midwestern U.S. and other countries have been shown to exhibit price cycles, in which competition generates rapid cyclical retail price movements. We show that cost changes in cycling markets ...

Corporate social responsibility (CSR) is defined as corporate activities and their 7 impacts on different social groups. In this paper, CSR is considered in a two-echelon supply 8 chain consisting of an upstream supplier and a downstream firm that are bound by a wholesale 9 price contract. CSR performance (the outcome of CSR conduct) of the whole supply chain is 10 gauged by a global variable a...

In this paper, an inventory model for deterioration items in a two-echelon supply chain including one retailer and one manufacturer is proposed by considering the stock and price dependent demand and capacity constraint for holding inventories. First, the model is presented as a leader-follower game in which the manufacturer announces wholesale prices. Second, the retailer decides for the order...

In this paper, we consider the coordination issue on a supply chain when the firm on this chain tries to produce new products. By considering the risk of new products, three contracts, constant wholesale price contract, revenue sharing contract and linear quantity discount policy, are investigated.

This thesis deals with five important ideas pertaining to supply chains and supply contracts: coordination, flexibility in allocating profit, the push-pull boundary, the valuation of capacity, and cooperation versus competition and its efects on profit and prices. Throughout the thesis, we focus on capacity-constrained supply channels, motivated by the fact that most real-world supply chains ha...