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Intertemporal Pricing and Allotment of Sea-cargo Capacity under Reference Effect

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DOI: 10.4236/jssm.2008.13022    4,676 Downloads   8,057 Views Citations
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ABSTRACT

Reference effect influences the shippers’ purchase behavior to some extent, and it makes shippers’ behavior more mys-terious. Furthermore, it leads to complex to coordinate procurement and pricing of forwarder and carrier. Firstly, we introduce the reference effect into the sea-cargo service supply chain composed with carriers and forwarders, and build the game-theoretical model to decide the optimal contract price and order quantity. Considering the situation where the market demand is affected by current price and reference price, we adopt dynamic programming and classical varia-tion method to analyze the dynamic equilibrium of the game under reference effect with symmetric information or not, respectively. Finally, this paper analyzes the reference effect to price, procurement and profit of carrier with digital analysis.

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X. Bu, L. Xu and L. Su, "Intertemporal Pricing and Allotment of Sea-cargo Capacity under Reference Effect," Journal of Service Science and Management, Vol. 1 No. 3, 2008, pp. 206-214. doi: 10.4236/jssm.2008.13022.

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