It is common that when a stock out occurs at a retailer the customer may go to another retailer. This phenomenon is often referred to as the customer market search. This paper analyzes the one manufacturer two retailer supply chain while considering the customer market search behavior. Game theoretic models are built to investigate the implications of this phenomenon in scenarios where wholesal...

This chapter presents some results of an econometric analysis (developed in Patrick and Wolak 2001b) of customer-level demands for electricity of large and medium-sized industrial and commercial customers purchasing electricity under half-hourly spot prices and demand charges coincident with system peaks in the England and Wales (E&W) electricity market. These estimates can be used to forecast ...

Quality-tiered private labels have become a main strategy for grocery retailers. However, impacts of label development on wholesale prices and their effects retail price rigidity remain unanswered as appropriate data scarce. This paper fills this research gap by analyzing retail-pricing behavior passthrough categories with quality-tier differentiated labels. We find the speed to differ across c...

We develop a model of vertical pricing in which an original manufacturer sets wholesale prices in two markets integrated at the distributor level by parallel imports (PI). In this context we show that if competition policy requires uniform wholesale prices across locations it would push retail prices toward convergence as transportation costs fall. However, these retail prices could be higher t...

This paper contributes to the supply chain contracts literature in economics and operations by performing qualitative sensitivity analysis of a wholesale price contract in a two-echelon supply chain setting. Ordertheory tools are used to derive sufficient conditions for monotonicity of contract parameters. The upstream supplier is modeled as a Stackelberg leader. The supplier is assumed to have...

The paper considers a two-echelon supply chain where a supplier determines his production quantity and a retailer chooses her order size and retail price for each period in an infinite horizon. Under a price-discount sharing (PDS) scheme, the supplier’s wholesale price linearly depends on the retail price. We develop a stochastic game in which these two supply chain members maximize their disco...

In this paper, we consider a two-leveled chain of supply that includes a manufacturer and a few retailers and in this chain VMI (Vendor-Managed Inventory) policy has been used. In this model, the manufacturer produces a limited amount of kind of production, and each retailer whose request is limited purchases the production with the wholesale price and sells it in retail price. In addition to t...

In this paper, we study the efficiency of the Chinese wheat and soybeans futures markets and assess the conditions in agricultural commodity futures and cash markets in China. Formal statistical tests are conducted through Johansen's cointegration approach to identify the long-term equilibrium relationship between futures and cash markets. Three different cash prices from Zhengzhou Grain Wholes...

A model with costly adjustment of production and costly inventories implies that wholesale gasoline prices will respond with a lag to crude oil cost shocks. Unlike explanations that rely upon menu costs, imperfect information, or long-term buyer/seller relationships, this model also predicts that futures prices for gasoline will adjust incompletely to crude oil price shocks that occur close to ...