Journal of the Korean Operations Research and Management Science Society (한국경영과학회지)

The Korean Operations Research and Management Science Society (한국경영과학회)
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Analytical Effect of Retailers Pull-to-center Behavior on Determining Optimal Buyback Price

소매상의 제한된 합리성이 반품가 결정에 미치는 영향에 대한 분석적 연구

  • Lee, Jung Min (Department of Business Administration, Graduate School of Chung-Ang University) ;
  • Seo, Yong Won (Department of Business Administration, Chung-Ang University) ;
  • Park, Chan-Kyoo (Department of Business Administration, Dongguk University(Seoul Campus))
  • 이정민 (중앙대학교 일반대학원 경영학과) ;
  • 서용원 (중앙대학교 경영경제대학 경영학부) ;
  • 박찬규 (동국대학교 경영대학 경영학부)
  • Received : 2013.07.25
  • Accepted : 2013.08.27
  • Published : 2013.09.30
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Abstract

The purpose of this paper is to analyze supplier's optimal decision of the buyback price facing irrational retailers. It has been known that retailers show irrational ordering behaviors, such as pull-to-center effect. We model the retailer's pull-to-center behavior and derive the supplier's optimal buyback price considering the retailer's bounded rationality. The result shows that the supplier's profit can be significantly improved exploiting the retailer's irrationality in the ordering behavior.

Keywords

References

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