Research on Fresh Agricultural Product Based on the Retailer's Overconfidence under Options and Spot Markets
Kai Nie and Man Yu
School of Economy and Trade, Hunan University, Changsha 410079, Hunan, China
ABSTRACT:
In this article, we analyze the application of options contract in the special commodity supply chain such as
fresh agricultural products. This problem is discussed from the point of the retailer. When spot market and
future market are both available, we discuss how the retailer chooses the optimal production. Furthermore,
overconfidence is introduced to the supply chain of the fresh agricultural products, which has not happened
before. Then，based on the overconfidence of the retailer, we explore how overconfidence affects the supply
chain system under different circumstances. At last, we get the conclusion that different overconfidence
level has different affection on retailer’s optimal ordering quantity and profit.
KEYWORDS:
fresh agricultural product; overconfidence; options contract; freshness; ordering
strategy.
More Details:
Comments
Post a Comment