Loss allocation in the newsvendor problem with fairness concerns
نویسندگان
چکیده
This paper studies the loss allocation problem in a supplier-retailer supply chain when the retailer reveals fairness concern. A loss-sharing contract is provided to coordinate such a loss and some new interesting management insights are found.
منابع مشابه
Cooperative Benefit and Cost Games under Fairness Concerns
Solution concepts in cooperative games are based on either cost games or benefit games. Although cost games and benefit games are strategically equivalent, that is not the case in general for solution concepts. Motivated by this important observation, a new property called invariance property with respect to benefit/cost allocation is introduced in this paper. Since such a property can be regar...
متن کاملRisk premiums and certainty equivalents of loss-averse newsvendors of bounded utility
Loss-averse behavior makes the newsvendors avoid the losses more than seeking the probable gains as the losses have more psychological impact on the newsvendor than the gains. In economics and decision theory, the classical newsvendor models treat losses and gains equally likely, by disregarding the expected utility when the newsvendor is loss-averse. Moreover, the use of unbounded utility to m...
متن کاملA New Fairness Index and Novel Approach for QoS-Aware Resource Allocation in LTE Networks Based on Utility Functions
Resource allocation techniques have recently appeared as a widely recognized feature in LTE networks. Most of existing approaches in resource allocation focus on maximizing network’s utility functions. The great potential of utility function in improving resource allocation and enhancing fairness and mean opinion score (MOS) indexes has attracted large efforts over the last few years. In this p...
متن کاملCross-layer Packet-dependant OFDM Scheduling Based on Proportional Fairness
This paper assumes each user has more than one queue, derives a new packet-dependant proportional fairness power allocation pattern based on the sum of weight capacity and the packet’s priority in users’ queues, and proposes 4 new cross-layer packet-dependant OFDM scheduling schemes based on proportional fairness for heterogeneous classes of traffic. Scenario 1, scenario 2 and scenario 3 lead r...
متن کاملA risk-averse competitive newsvendor problem under the CVaR criterion
We study a risk-averse newsvendor problem with quantity competition and price competition. Under the Conditional Value-at-Risk (CVaR) criterion, we characterize the optimal quantity and pricing decisions under both quantity and price competition. For quantity competition, we consider two demand splitting rules, namely proportional demand allocation and demand reallocation. Although competition ...
متن کامل