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Prof.Juan Li's Lecture Notice

Publish Date: 2018/05/28 11:40:14    Hits:

Title:The Effect of Social Comparison on Pricing Decisions: An Experimental Study

Presenter: Prof.Juan Li

Time:2018.5.30,15:30-17:00 pm


Invited by:Tianliang Liu


Social comparison is a natural tendency in human beings. Members in a supply chain often make profit comparisons. This paper investigates 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. There are two types of social comparison in this paper, distributional and peer-induced social comparison. The former refers to the social comparison between a supplier and a retailer and the latter refers to the social comparison between two retailers. This paper leads to three main conclusions. Firstly, distributional social comparison, supplier’s comparison with retailers, is negatively related to the supplier’s profit and peer-induced social 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 is more intensive than that among female subjects.