May 30th, 2018,in Room A1048 of the New Main Building, Dr. Juan Li, an associate professor at Nanjing University, was invited to give a lecture on “The Effect of Social Comparison on Pricing Decisions: An Experimental Study". The lecture was hosted by Associate professor Tianliang Liu. 20 audiences attended, including professors,graduate and undergraduate students from Beihang University and Nanjing University.
Prof. Juan Li introduced the basic method of experimental study in detail and shared recent research. How social comparison affects pricing decisions in a one-supplier and two-retailer supply chain with considering the heterogeneity of individuals from the aspect of gender? Based on previous studies, Prof. Li divided social comparison into two types: distributional and peer-induced social comparison.The former refers to the social comparison between a supplier and a retailerand the latter refers to the social comparison between two retailers. Under the premise of the set experiment, the experimental subjects were subjected tomultiple groups of experimental studies. The correlation model was established through statistical data analysis. The analysis obtains three main conclusions:Firstly, distributional social comparison, supplier’s comparison with retailers, is negatively related to the supplier’s profit and peer-inducedsocial comparison is positively related to the supplier’s profit. Secondly,peer-induced social comparison is more salient than distributional social comparison. Thirdly, distributional social comparison among male subjects ismore intensive than that among female subjects. Finally, Prof. Li summarizedthe limitations of experimental research and further research directions.
During the lecture, the participants conducted in-depth discussions with Prof. Li on therelated issues. Her wonderful report provided a good reference to carry outexperimental research.
