Bounded rationality, asymmetric information and mispricing in financial markets

Gong, Qingbin; Diao, Xinshen

doi:10.1007/s00199-021-01366-5

Cited by 3 publications

(2 citation statements)

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“…In the past, scholars often use the "rational economic man hypothesis" in their research, which assumes that consumers' attitudes toward products are completely rational [28]. In fact, after purchasing a product, consumers often regret the purchase because the product does not meet their psychological expectations, which is called purchase regret psychology, and the research on regret psychology can be divided into static and dynamic situations.…”

Section: Consumer's Purchase Regret Psychologymentioning

confidence: 99%

“…(1) Given the values of two acquisition regret coefficients ζ 1 and ζ 2 for consumers, a numerical analysis is conducted to explore the optimal pricing strategy of each decisionmaker in the closed-loop supply chain at each stage. Let 23), (24), and (28) in Section 5 to analyse the optimal pricing of each participant in the closed-loop supply chain at each stage under different scenarios of ∆ − a and ∆ − b. The results are shown in Table 4.…”

Section: Numerical Analysismentioning

confidence: 99%

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Difference Game of Closed-Loop Supply Chain of Innovative Products with Discrete-Time Conditions

Liu

2023

Mathematics

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This paper aims to explore the impact of the purchase regret of consumers on dynamic closed-loop supply chains (CLSCs) under discrete-time conditions. Durable products are mostly traded under discrete-time conditions, and consumers tend to have different purchase regret psychologies during the trading process of different types of durable products (innovative or remanufactured). In addition, different purchase regret psychologies can affect the dynamic decision-making behaviour of the nodal enterprises in the supply chain, thus affecting the dynamic decision-making optimization sequence of the supply chain and nodal enterprises. Based on the traditional Bass model, this paper introduces the factor of consumer purchase regret psychology into the Bass model and constructs a model of a CLSC led by the manufacturer and followed by the retailer and recycler on the premise of heterogeneous characteristics of new products and remanufactured products. The optimal control theory of discrete systems is used to obtain the optimal decision sequence for each participant in the CLSC, when there is consumer regret psychology in the market. Then, the effects of consumer purchase regret psychology on the members of the CLSC at each stage are analysed. Finally, the conclusions are verified by using a numerical analysis. Compared to previous studies, the results further revealed the following: when the market share of brand new products is below 50%, the wholesale and retail prices are positively related to the regret psychology; while when they are above 50%, the wholesale and retail prices are negatively related to the regret psychology; the product sales and the manufacturers and retailers’ profits are negatively related to the regret psychology; purchase regret psychology does not affect the recyclers’ profits. To mitigate the negative consequences of the purchase regret psychology, manufacturers and merchants should completely grasp the market, enhance product quality, such that the price plan for the product is fairer.

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Section: Consumer's Purchase Regret Psychologymentioning

confidence: 99%

Section: Numerical Analysismentioning

confidence: 99%