We exploit a unique merchant-level dataset from the monopoly payment card network in China to study payment card pricing. We develop hypotheses associating payment card pricing to card penetration rate, profitability and fraud risk. Our empirical analysis uses the variations in those three factors across industries to show that the card network charges a higher merchant discount for industries ...

The choice between quantity and price in order to stabilize collusion is modeled here. It is shown that this relocates the prisoners’ dilemma backwards, from the market stage to the stage where the market variable is chosen in order to sustain collusion, and where discount rates appear as the payo¤s. Likewise, a prisoners’ dilemma arises also when both the market variable and the type of behavi...

In the present paper, the effect of income elasticity on demand has been considered and the buyer’s optimal special order quantity and optimal time has been determined, when supplier reduces sale price then buyer may offer a discount to push his sale to increase his profit margin. Income elasticity effect in inventory analysis has been introduced to obtain the gain equation to find the optimal ...

We investigate the choice of market variable, price or quantity, of an optimal implicit cartel. If the discount factor is high, the cartel can realize the monopoly pro...t in both cases. Otherwise, it is optimal for the cartel to rely on quantities in the collusive phase if goods are substitutes and prices if goods are complements. The reason is that this minimizes the gains from deviations fro...

This article studies the classical reorder quantity, order point (Q, r) continuous review stochastic inventory model with Poisson arrivals and a fixed lead time. This model has been extensively studied in the literature and its use in practice is widespread. This work extends previous research in this area by providing efficient algorithms for the computation of the optimal (Q∗, r∗) values when...

In this paper, a novel resilient multi-echelon closed-loop location-allocation-inventory problem (RMCLIP) is addressed that optimizes strategic and tactical decisions simultaneously. In order to represent the purchasing cost of raw material from the supplier, a pricing model under quantity discounts is employed in the closed-loop supply chain (CLSC). Considering the capability of returning the ...

This paper studies a problem encountered by a buying office for one of the largest retail distributors in the world. An important task for the buying office is to plan the distribution of goods from Asia to various destinations across Europe. The goods are transported along shipping lanes by shipping companies, which offer different discount rates depending on the freight quantity. To increase ...

In this paper, we discuss the possible effects of a temporary price discount offered by a supplier on a retailer’s replenishment policy for timedependent deteriorating items with constant demand rate. The optimal ordered quantity of a special order policy for a selected case is obtained by maximizing the total cost saving between special and regular orders for the duration of the depletion time...

Coordination between two different business entities is an important way to gain competitive advantage as it lowers supply chain cost. This paper reviews literature dealing with buyer vendor coordination models that have used quantity discount as coordination mechanism under deterministic environment and classified the various models. An effort has also been made to identify critical issues and...

Intertemporal decision making involves choices among options whose effects occur at different moments. These choices are influenced not only by the effect of rewards value perception at different moments, but also by the time perception effect. One of the main difficulties that affect standard experiments involving intertemporal choices is the simultaneity of both effects on time discounting. I...