Unimodality of price-setting newsvendor's objective function with multiplicative demand and its applications

A risk-averse newsvendor model under marketing-dependency and price-dependency

“…However, some studies address the issue in the supply chain contexts, e.g., Krishnan (2004), Kunter (2012), Liu et al (2010), Taylor (2006). The most related works are He et al (2009) and Xu et al (2011). The authors consider a newsvendor problem in which the demand depends on both the retail price and the marketing effort.…”

“…The authors consider a newsvendor problem in which the demand depends on both the retail price and the marketing effort. However, the newsvendor is assumed to be risk-neutral in the two papers, and the marketing cost is assumed to be proportional to the order quantity in Xu et al (2011), whereas we assume that the newsvendor is risk-averse, and the marketing effort cost, completely irrespective of the order quantity, depends merely on the marketing effort levels. The marketing cost function is used by most of the related literature, e.g., Liu et al (2010), Taylor (2006).…”

Stackelberg Equilibria in a Multiperiod Vertical Contracting Model with Uncertain and Price-Dependent Demand

“…Note that L E does not depend on the choice of the function σ[R]. For the construction used to solve multiperiod Stackelberg games in this paper, it is important that the deterministic function σ[R] enters as a multiplicative factor in (10). Thus, it is essential that the σ dependence is handled through the format we use in (3).…”

“…We ignore the possibility that the retailer can negotiate the wholesale price. Given W , the retailer (follower) then chooses the retail price R and the order quantity q to maximize expected profit as given by (10). The manufacturer knows that the retailer will choose q to maximize expected profit.…”

“…For a useful review of the problem with extensions, see Petruzzi and Dada (1999). See also Xu et al (2010) and Xu et al (2011) for recent contributions to the price-dependent case.…”