Strategic Wholesale Pricing for an Incumbent Supplier Facing with a Competitive Counterpart
Author
Source
Issue
Vol. 2014, Issue 2014 (31 Dec. 2014), pp.1-10, 10 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2014-10-14
Country of Publication
Egypt
No. of Pages
10
Main Subjects
Medicine
Information Technology and Computer Science
Abstract EN
We introduce a wholesale pricing strategy for an incumbent supplier facing with a competitive counterpart.
We propose a profit function which considers both the present loss and future loss from a wholesale price and then study the optimal wholesale prices for different objectives about this profit function for the incumbent supplier.
First, we achieve an optimal wholesale price for the incumbent supplier to maximize his expected profit.
Then, to reduce the risk originating from the fluctuation in the competitive supplier’s wholesale price, we integrate the conditional value-at-risk (CVaR) measure in financial risk management into this study and derive an optimal wholesale price to maximize CVaR about profit for the incumbent supplier.
Besides, the properties of the two optimal wholesale prices are discussed.
Finally, some management insights are suggested for the incumbent supplier in a competitive setting.
American Psychological Association (APA)
Sun, Jianwu. 2014. Strategic Wholesale Pricing for an Incumbent Supplier Facing with a Competitive Counterpart. The Scientific World Journal،Vol. 2014, no. 2014, pp.1-10.
https://search.emarefa.net/detail/BIM-1050300
Modern Language Association (MLA)
Sun, Jianwu. Strategic Wholesale Pricing for an Incumbent Supplier Facing with a Competitive Counterpart. The Scientific World Journal No. 2014 (2014), pp.1-10.
https://search.emarefa.net/detail/BIM-1050300
American Medical Association (AMA)
Sun, Jianwu. Strategic Wholesale Pricing for an Incumbent Supplier Facing with a Competitive Counterpart. The Scientific World Journal. 2014. Vol. 2014, no. 2014, pp.1-10.
https://search.emarefa.net/detail/BIM-1050300
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1050300