Pass-through of Commodity Price Shocks in Distribution Channels with Risk-averse Agents

We apply variance analysis for studying the risk-sharing mechanism in distribution channels, in which the risk-averse buyer and supplier are suffered from commodity price shocks. We obtain the closed-form optimal pass-through rate that minimizes the total channel risk and maximizes the channel throughput for a Stackelberg leadership game and a Nash bargaining solution. Using the commodity price data in the steel industry, we demonstrate that the pass-through rate should be set between 40 and 80% for major metal alloys

MoreLess

Year of publication:	2020
Authors:	Luong, Phat V.
Other Persons:	Xu, Xiaowei (contributor)
Publisher:	[2020]: [S.l.] : SSRN
Subject:	Vertriebsweg \| Distribution channel \| Rohstoffpreis \| Commodity price \| Schock \| Shock \| Risikoaversion \| Risk aversion \| Theorie \| Theory \| Preismanagement \| Pricing strategy

freely available

Full text |

More access options

doi.org

Check Google Scholar

In German libraries (KVK)

I need help

Which error do you want to report?

Report: URL of this record is broken

Please note: Sometimes more than one URL is available for a resource. Please click on "More Options" to display these URLs

Report: Addition of an URL to that resource

Please note: Sometimes more than one URL is available for a resource. Please click on "More Options" to display these URLs

Report: The language(s) of that resource is/are…

Please note: Required language not in the list? Please use comment field

Report: Addition of an identifier to that resource

Report: report typo

Report: Add statement

Report: Add keywords

Please use the commentary box to describe other errors

Would you like to receive a feedback?

Commentary

Please type the code from the image

For general questions please use this address.

Persistent link: https://www.econbiz.de/10012847002