Universität zu Köln

Becker-Peth, Michael ORCID: 0000-0002-4496-7702 and Thonemann, Ulrich ORCID: 0000-0002-3507-9498 (2016). Reference points in revenue sharing contracts How to design optimal supply chain contracts. Eur. J. Oper. Res., 249 (3). S. 1033 - 1050. AMSTERDAM: ELSEVIER SCIENCE BV. ISSN 1872-6860

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Abstract

Coordinating supply chains is an important goal for contract designers because it enables the channel members to increase their profits. Recently, many experimental studies have shown that behavioral aspects have to be taken into account when choosing the type of contract and specifying the contract parameters. In this paper, we analyze behavioral aspects of revenue-sharing contracts. We extend the classical normative decision model by incorporating reference-dependent valuation into the decision model and show how this affects inventory decisions. We conduct different lab experiments to test our model. As a result, human inventory decisions deviate from classical normative predictions, and we find evidence for reference-dependent valuation of human decision makers. We also show how contract designers can use the insights we gained to design better contracts. (C) 2015 Elsevier B.V. and Association of European Operational Research Societies (EURO) within the International Federation of Operational Research Societies (IFORS). All rights reserved.

Item Type:	Journal Article
Creators:	Creators Email ORCID ORCID Put Code Becker-Peth, Michael UNSPECIFIED orcid.org/0000-0002-4496-7702 UNSPECIFIED Thonemann, Ulrich UNSPECIFIED orcid.org/0000-0002-3507-9498 UNSPECIFIED
URN:	urn:nbn:de:hbz:38-281253
DOI:	10.1016/j.ejor.2015.06.007
Journal or Publication Title:	Eur. J. Oper. Res.
Volume:	249
Number:	3
Page Range:	S. 1033 - 1050
Date:	2016
Publisher:	ELSEVIER SCIENCE BV
Place of Publication:	AMSTERDAM
ISSN:	1872-6860
Language:	English
Faculty:	Faculty of Management, Economy and Social Sciences
Divisions:	Center of Excellence C-SEB
Subjects:	Economics
Uncontrolled Keywords:	Keywords Language BOUNDEDLY RATIONAL CUSTOMERS; NEWSVENDOR PROBLEM; REFERENCE DEPENDENCE; DECISION-MAKING; LOSS AVERSION; BRAND CHOICE; COORDINATION; MODEL; PREFERENCES; PERFORMANCE Multiple languages Management; Operations Research & Management Science Multiple languages
Refereed:	Yes
URI:	http://kups.ub.uni-koeln.de/id/eprint/28125