Pricing strategy of 4 PL with risk -aversion for reverse supply chain
LIU Xiao-yun
ZHANG Yu-bin
Abstract：On the new market and the secondary market , we research the reverse supply chain including the fourth party logistics (4PL) of recycling service providers and the retailers under demand function depending on price.When 4PL faces the risk of uncertain recycling quantity , we consider how risk attitude of 4PL impact on the optimal pricing decision .Using the Stackelberg game model , retailer who will decide retail price is a leader , 4 PL who will decide recycling price of the second -hand products is a follower and response Leader strategy .By selecting the mean-variance utility function , we get the risk-aversion 4PL and risk-neutral retailer′s optimal pricing strategy , and found that the risk attitude of 4PL may also affect retailer′s decision.By numerical analysis we found the higher the degree of 4PL -risk aversion is, the higher recycling price of 4PL is , and the higher the retailer′s profit is;4PL′s risk-averse behavior have no significant impacts on the profit of 4PL and retail price of retailers and 4 PL in the new /secondary market .
Keywords：risk aversionfourth party logisticsprice decisionStackelberg game
Publication Date：2017-01-01
Online Publishing Date：2025-08-15(First online date of this platform, not the publication date of the document)
Pages：6( 193-198 )