Benefiting from the Economic Recession? A Supply Chain Perspective
Operations Research Letters, 2012
12 Pages Posted: 27 Nov 2012
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: 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
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