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Pricing Decisions for Supply Chain Considering Overconfidence of Retailers with Channel Competition
WANG Wenjie,LIU Yazhou
Donghua University, Shanghai, China

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Abstract  This study examines the distinctions in a dual-channel supply chain among retailers: those with overconfidence in both retailers, those with overconfidence only in physical retailers, those with overconfidence only in e-retailers, and those without overconfidence in respective channel. It analyzes how the intensity of channel competition and retailer overconfidence impact pricing decisions and profit gains in the supply chain. The results indicate that retailer overconfidence generally raises product retail prices, while increased channel competition promotes price reduction. Retailer overconfidence consistently benefits competitors’ profits, except when the retailer’s level of overconfidence is lower than that of competitors, which gives it a profit advantage. Additionally, the intensity of channel competition and the level of retailer overconfidence are crucial factors influencing brand manufacturers’ profits.
Key wordschannel competition      overconfidence      dual-channel supply chain      pricing decisions     
Received: 08 August 2022     
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WANG Wenjie
LIU Yazhou
Cite this article:   
WANG Wenjie,LIU Yazhou. Pricing Decisions for Supply Chain Considering Overconfidence of Retailers with Channel Competition[J]. Chinese Journal of Management, 2023, 20(10): 1525-.
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http://manu68.magtech.com.cn/Jwk_glxb/EN/     OR     http://manu68.magtech.com.cn/Jwk_glxb/EN/Y2023/V20/I10/1525
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