Supplier encroachment and pricing scheme choice in a supply chain with two-sided uncertainties
研究了供应商在现货市场采购并加工成最终产品时，零售商在或有定价与承诺定价之间的选择，以及供应商入侵决策的影响。发现相关性较小时零售商偏好或有定价，而供应商入侵会降低其采用意愿。
This paper examines supplier encroachment in a scenario where the supplier procures an input in spot and processes it into a final product, while the retailer chooses between contingent and committed pricing schemes for the contract price. We find that when the correlation between the input spot price and final product demand is relatively small, it is optimal for the retailer to adopt the contingent pricing scheme regardless of the supplier's encroachment decision. This is because this scheme enables the supplier to share the input price risk, resulting in a lower contract price. Furthermore, the likelihood of the retailer adopting the contingent pricing scheme increases as demand variability decreases or spot price volatility increases. However, supplier encroachment reduces the retailer's inclination to use the contingent pricing scheme. We further demonstrate that the supplier should encroach when the correlation is sufficiently small, because encroachment alleviates double marginalisation in the retail channel and brings the additional responsiveness in the direct channel. By contrast, a large correlation compels the supplier to encroach even with a sufficiently small market size. In this case, encroachment improves the responsiveness of both retail and direct selling quantities and enables the quantities to match the demand better.