Low carbon decision-making model under the combined effect of corporate social responsibility and overconfidence

This paper explores the impact of retailers' corporate social responsibility (CSR) and manufacturers' overconfidence on manufacturers' carbon reduction in sustainable supply chains. We analyze the profits of manufacturers and retailers under different scenarios and explore the social welfare and environmental impacts under CSR. Our results suggest that retailers' CSR and manufacturers' overconfidence contribute positively to promoting carbon mitigation and reducing environmental impacts under certain conditions. However, with increasing CSR and manufacturer overconfidence levels, manufacturers are more likely to lead to worse environmental impacts and carbon emission reduction. In addition, we show that when the manufacturer's overconfidence level is high, manufacturers and retailers are more profitable and contribute to carbon emission reductions in the manufacturer without overconfidence (retailer without CSR) scenario. Moreover, we find that firms have the higher potential to capture optimal overall social welfare in the presence of retailers with CSR and manufacturer overconfidence

Experiments on supply chain contracting: effects of contract type and fairness concerns

In this thesis, we conduct experiments with human decision makers on supply chain contracting. We consider a simple manufacturer-retailer supply chain scenario where the retailer faces the newsvendor problem. Building on Sahin and Kaya (2011), we compare the experimental performance of three contract types (wholesale price, buyback and revenue sharing contracts) between the firms with theoretical predictions, and among each other. We are interested in the manufacturer’s contract parameter decisions, the retailer’s stock quantity decision, and the firms’ profits. In theory, in terms of supply chain efficiency, the buyback and revenue sharing contracts should be equivalent to each other, and should be superior to the wholesale price contract. Our experiments, however, find the wholesale price contract to perform better, and the revenue sharing contract to perform worse than theoretical predictions. The profit distribution between the firms is also much more equitable than predicted. The primary reason for these differences is the biases in retailers’ stock quantity decisions. We determine the factors that affect the retailer’s stock quantity decision using feature selection and classification techniques. Using a multiple regression model, we show how fairness concerns affect this decision. We also observe short-run relationships between the firms to cause better performance in experiments than long-run relationship, perhaps due to destructive gaming between the firms

Decision-making experiments on dual sales channel coordination

In this thesis, we conduct an experimental study with human decision makers, on dual sales channel coordination. We aim to determine dual channel strategies for a manufacturer who sells its product thorough both an independent retailer channel and its totally owned direct online channel. The two channels compete on service, where the service level of the retailer channel is measured with its product availability level, and the service level of the direct channel is measured with its delivery lead time. This multi-stage game-theoretical model was previously solved for the wholesale price contract (Chen et al. 2008) and buyback contract (Gökduman and Kaya 2009) cases. We compare these models' theoretical predictions with the outcome of our experiments with human decision makers. In particular, we analyze the theoretical and observed coordination performance of the wholesale price and buyback contracts between the two firms. We identify deviations from theoretical predictions that can be attributed to behavioral factors, such as risk aversion

Experiments on supply chain contracting: effects of contract type and relationship length

In this thesis, we conduct experiments with human decision makers on supply chain contracting. We consider a manufacturer-retailer supply chain where the manufacturer sets contract parameters and the retailer faces the newsvendor problem. Contrary to theoretical predictions, we find the experimental performance of the wholesale price contract and the buyback contract to be close to each other. The buyback contract fails to fulfill its promise of inducing high order quantities leading to higher supply chain profits. The manufacturers offer more profitable buyback contracts to retailers, and as a result, the retailers make higher profit and the manufacturers make lower profit than predicted. On the contrary, the simple wholesale price contract resulted in higher retailer and total supply chain profits than predicted, thanks to the overstocking bias of the retailers. Another surprising observation is that experiments with short-run interaction between the manufacturer-retailer pairs resulted in higher profit than the experiments with long-run interaction. Finally, we did not find consistent evidence to support the existence of learning-by-doing, and of certain decision heuristics mentioned in literature

Explaining retailer's ordering behavior in supply chain experiments

In this thesis, we study the retailer’s ordering behavior in a manufacturer-retailer supply chain where the retailer faces the newsvendor problem. Analytical literature predicts that the retailer will use the critical ratio solution when determining her order quantity from the manufacturer. When real human beings play the roles of manufacturer and retailer in controlled experiments, however, the retailer decisions are observed to deviate from these theoretical predictions. The deviations are due to (1) individual biases and heuristics, (2) the strategic interaction between the two players. Literature has studied the effects of individual biases and heuristics using simple newsvendor experiments. However, very few researchers have conducted experiments where both sides are human. This extension is valuable because supply chain relations in practice depend on human-to-human interaction between managers. In this study, using data from the supply chain experiments of Şahin and Kaya (2011), we aim to answer the following questions: (1) Do retailer subjects follow the heuristics observed in simple newsvendor experiments? (2) What are the factors affecting retailer decisions? (3) Do retailer subjects learn to make better decisions over time? We find that retailer behavior is highly heterogeneous. While there is support for the use of decision heuristics at the aggregate level, we have mixed results at individual level. Likewise, the factors that affect retailer order quantity are found to be subject-dependent. The extent of learning is also found to differ from subject to subject

The Customer-Centered B2C Literature through the Lens of Activity Theory: A Review and Research Agenda

A multitude of published research studies investigate the B2C phenomenon from the customer point of view. At this point, making sense of such a large number of studies is a difficult task. The aim of this paper is to organize the literature to provide a clear depiction of what we know and what we don\u27t know about it in order to identify specific areas where future research efforts are needed. A review of the B2C literature of the past seven years yielded 115 papers investigating the phenomenon from the user/customer perspective, 74 of these were empirical. This literature is organized according to the Activity Theory framework, allowing for an enhanced understanding of the phenomenon through a social context perspective. Future research directions are identified and discussed

Persistence in Consumer Search

In this dissertation, I explore determinants, and some consequences, of persistence in consumer search. Many prominent thinkers have considered the problem of search in terms of optimal solutions, or their heuristic approximations. In the following research, I explore persistence in search not merely as a function of economic calibration, but rather as an outcome determined by both cognitive and motivational processes. I provide evidence that normative models of search are insufficient to explain the behavior of those whom I study. Instead, I show cases in which search persistence is a function of prior behavior (Chapter 1) and prior beliefs (Chapter 2). I further propose a cognitive model of price search behavior (Chapter 3) that can predict many of the observed behaviors that would be considered mistakes in normative price search frameworks (e.g., variance neglect, reference point effects, local contrast effects)

The BG News November 6, 1998

The BGSU campus student newspaper November 6, 1998. Volume 82 - Issue 53https://scholarworks.bgsu.edu/bg-news/7401/thumbnail.jp