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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.
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Received: 08 August 2022
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