Interactive Impacts of Overconfidence and Competitive Preference on Closed-Loop Supply Chain Performance

Abstract

As sustainable development becomes an important goal for all industries, the study of closed-loop supply chains has gradually become a priority. Most of the previous studies on closed-loop supply chains are based on simple and single market conditions, which cannot analyze the real situation well. In this paper, two common behavioral preferences in the market, overconfidence and competitive preference, are incorporated into the study of closed-loop supply chains to investigate how the overconfidence of retailers and the competitive preference of manufacturers jointly affect the decisions and interests of both parties in closed-loop supply chains under different dominant models. It is concluded that in terms of pricing, while the wholesale price increases in the competitive preference, the reselling price in fact decreases when the retailer’s overconfidence level is of a middle level; in terms of recycling, the pursuit of high profits by monopolistic manufacturers is not conducive to recycling quantity in the secondary supply chain with recycling; in terms of profits, in a manufacturer-led model, the profits of all sides in the closed-loop supply chain, including the manufacturer itself, sometimes diminish as the manufacturer’s competitive preference behavior becomes more intense.

Green supply chain management, risk-taking, and corporate value—Dual regulation effect based on technological innovation capability and supply chain concentration

“…Asghari et al (2022) studied the decision making problem of pricing and advertising in a closed-loop supply chain network. Xu et al (2022b) incorporates overconfidence and competitive preferences into a closed-loop supply chain study and proposes a series of Stackelberg models with multiple dominant models, exploring how the chain of behavioural preferences jointly affects the pricing, profit, utility and social benefit decisions of both parties under different dominant models.…”

Uncertainty Analysis and Optimization Modeling with Application to Supply Chain Management: A Systematic Review

“…The growing awareness of the importance of SCM has generated substantial literature. This literature focuses on how to manage a global supply chain (GSC) (e.g., [5]), sustainability management of supply chain (e.g., [6][7][8][9][10][11][12]), closed-loop supply chain (e.g., [13]), risk management (RM) (e.g., [14][15][16]), and disruption recovery (DR) (e.g., [17]). Within the research stream of SCM globalization, Koberg and Longoni [5] provided a comprehensive analysis of the crucial components of sustainable management in GSC.…”