The COVID-19 pandemic resulted in the establishment of several restrictions Japan that caused an external shock to food supply chain. This study investigates onion price changes resulting from Tokyo wholesale/retail market by using anomaly analysis, asymmetric transmission, and event study. It was found wholesale experienced a significant fall between April 2020 May recovered after state emerge...

We study supply chain contracting with investment in demand forecasting under downstream competition. Supporting some recent industry observations, we show that under common pricing schemes, such as wholesale price or two-part tariff, downstream firms overinvest in demand forecasting. Analyzing the bounds and determinants of overinvestment, we demonstrate that the wholesale price and two-part t...

Transmission expansions can increase the extent of competition faced by wholesale electricity suppliers with the ability to exercise unilateral market power. This can cause them to submit offer curves closer to their marginal cost curves, which sets market-clearing prices closer to competitive benchmark price levels. These lower wholesale market-clearing prices are the competitiveness benefit c...

The traditional approach to demand response of paying for a customer’s electricity consumption reductions relative to an administratively set baseline is currently being advocated by the Federal Energy Regulatory Commission (FERC) as a way to foster the participation of final consumers in formal wholesale markets. Although these efforts may lead to greater participation of final consumers in tr...

We study the effects of credit risk in a supply chain where one retailer deals with competing risky suppliers who may default during their production lead-times. The suppliers, who compete for business with the retailer by establishing wholesale prices, are leaders in a Stackelberg game with the retailer. The retailer, facing uncertain future demand, chooses order quantities while weighing the ...

It is common that when a stock out occurs at a retailer the customer may go to another retailer. This phenomenon is often referred to as the customer market search. This paper analyzes the one manufacturer two retailer supply chain while considering the customer market search behavior. Game theoretic models are built to investigate the implications of this phenomenon in scenarios where wholesal...

Related parties in vertical relationships routinely have competing objectives. While conventional wisdom suggests that such frictions can be alleviated by centralized control, this paper demonstrates that decentralization and the tensions that arise in transfer pricing can help coordinate the decisions of affiliated firms. In particular, a vertically integrated central planner may find it diffi...

We examine the pass-through of wholesale prices to retail prices in the market for E85, which contains 51% – 83% ethanol, and in the much larger market for E10 (regular unleaded gasoline), which contains 10% ethanol. We use a panel data set consisting of monthly observations from 2007-March 2015 on wholesale and retail prices for 274 Minnesota gas stations that sell both E10 and E85. The E10 ma...

We consider a supply chain with an upstream supplier who invests in innovation and a downstream manufacturer who sells to consumers. We study the impact of supply chain contracts with endogenous upstream innovation, focusing on three different contract scenarios: (i) a wholesale price contract, (ii) a quality-dependent wholesale price contract, and (iii) a revenuesharing contract. We confirm th...