Benefiting from the Economic Recession? A Supply Chain Perspective

Operations Research Letters, 2012

12 Pages Posted: 27 Nov 2012

See all articles by Lu Hsiao

Lu Hsiao

National Chung Hsing University

Ying-Ju Chen

Hong Kong University of Science & Technology (HKUST) - Department of Information Systems, Business Statistics and Operations Management

Date Written: November 26, 2012

Abstract

This paper demonstrates that firms and consumers may mutually benefit from the economic recession if the supply chain structure is explicitly taken into consideration. The model characteristics include consumer heterogeneity, intra-channel mis-coordination, and strategic interactions in this upstream-downstream relationship. The analysis reveals the possibility of Pareto improvement along the supply chain, and identifies the concrete regimes in which these mutual benefits may arise.

Keywords: economic recession, supply chain, consumer heterogeneity

Suggested Citation

Hsiao, Lu and Chen, Ying-Ju, Benefiting from the Economic Recession? A Supply Chain Perspective (November 26, 2012). Operations Research Letters, 2012, Available at SSRN: https://ssrn.com/abstract=2181219

Lu Hsiao

National Chung Hsing University ( email )

402, No. 250 Kuo Kuang Road, Taiwan
Taichung, Taiwan
China

Ying-Ju Chen (Contact Author)

Hong Kong University of Science & Technology (HKUST) - Department of Information Systems, Business Statistics and Operations Management ( email )

Clear Water Bay
Kowloon
Hong Kong

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
49
Abstract Views
477
PlumX Metrics