When implementing SVMs, two major problems are encountered: (a) the number of local minima increases exponentially with the number of samples and (b) the quantity of required computer storage, required for a regular quadratic programming solver, increases by an exponential magnitude as the problem size expands. The Kernel-Adatron family of algorithms gaining attention lately which has allowed to handle very large classification and regression problems. However, these methods treat different types of samples (Noise, border, and core) with the same manner, which causes searches in unpromising areas and increases the number of iterations. In this work , we introduce a hybrid method to overcome these shortcoming, namely Optimal Recurrent Neural Network Density Based Support Vector Machine (Opt-RNN-DBSVM). This method consists of four steps: (a) characterization of different samples, (b) elimination of samples with a low probability of being a support vector, (c) construction of an appropriate recurrent neural network based on an original energy function, and (d) solution of the system of differential equations, managing the dynamics of the RNN, using the Euler-Cauchy method involving an optimal time step. Thanks to its recurrent architecture, the RNN remembers the regions explored during the search process. We demonstrated that RNN-SVM converges to feasible support vectors and Opt-RNN-DBSVM has a very low time complexity compared to RNN-SVM with constant time step, and KAs-SVM. Several experiments were performed on academic data sets. We used several classification performance measures to compare Opt-RNN-DBSVM to different classification methods and the results obtained show the good performance of the proposed method.
{"title":"Opt-RNN-DBFSVM: Optimal recurrent neural network density based fuzzy support vector machine","authors":"K. E. Moutaouakil, Abdellatif el Ouissari","doi":"10.1051/ro/2023114","DOIUrl":"https://doi.org/10.1051/ro/2023114","url":null,"abstract":"When implementing SVMs, two major problems are encountered: (a) the number of local minima increases exponentially with the number of samples and (b) the quantity of required computer storage, required for a regular quadratic programming solver, increases by an exponential magnitude as the problem size expands. The Kernel-Adatron family\u0000of algorithms gaining attention lately which has allowed to handle very large classification and regression problems. However, these methods treat different types of samples (Noise, border, and core) with the same manner, which causes searches in unpromising areas and increases the number of iterations. In this work , we introduce a hybrid method to overcome these shortcoming, namely Optimal Recurrent Neural Network Density Based Support Vector Machine (Opt-RNN-DBSVM). This method consists of four steps: (a) characterization of different samples, (b) elimination of samples with a low probability of being a support vector, (c) construction of an appropriate recurrent neural network based on an original energy function, and (d) solution of the system of differential equations, managing the dynamics of the RNN, using the Euler-Cauchy method involving an optimal time step. Thanks to its recurrent architecture, the RNN remembers the regions explored during the search process. We demonstrated that RNN-SVM converges to feasible support vectors and Opt-RNN-DBSVM has a very low time complexity compared to RNN-SVM with constant time step, and KAs-SVM. Several experiments were performed on academic data sets. We used several classification performance measures to compare Opt-RNN-DBSVM to different classification methods and the results obtained show the good performance of the proposed method.","PeriodicalId":20872,"journal":{"name":"RAIRO Oper. Res.","volume":"1 1","pages":"2493-2517"},"PeriodicalIF":0.0,"publicationDate":"2023-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90917870","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The phenomenon of store brands introduced by large-scale platforms is becoming common, and manufacturers should carefully choose the business mode of selling national brand (NB) products via platforms. Considering big-data marketing, we examine the sales mode selection in a platform-based supply chain based on the strategic interaction between the business mode decision and store brand decision. By continuous dynamic game theory, the strategies and performance under different modes are solved. We find that given the store brand (SB) decision, the business mode adopted by the manufacturer depends only on the commission rate, which is high for reselling and low for agency selling. Given the business mode, under reselling, whether the platform introduces SB depends only on the brand preference, i.e., SB is introduced when the preference for NB is low. While under agency, he introduces SB in the general or relatively passive situation, depending both on the commission rate and the brand preference. In addition, four equilibrium sales modes are obtained based on the strategic interaction. In order to achieve a “win-win-win” situation in profitability among the manufacturer, the platform and the platform-based supply chain, the manufacturer should adopt agency selling and the platform forgoes introducing SB when both the commission rates and NB preference are low.
{"title":"The strategic interaction between business mode and store brand introduction in a platform-based supply chain","authors":"Jianheng Zhou, Yajie Ji","doi":"10.1051/ro/2023113","DOIUrl":"https://doi.org/10.1051/ro/2023113","url":null,"abstract":"The phenomenon of store brands introduced by large-scale platforms is becoming common, and manufacturers should carefully choose the business mode of selling national brand (NB) products via platforms. Considering big-data marketing, we examine the sales mode selection in a platform-based supply chain based on the strategic interaction between the business mode decision and store brand decision. By continuous dynamic game theory, the strategies and performance under different modes are solved. We find that given the store brand (SB) decision, the business mode adopted by the manufacturer depends only on the commission rate, which is high for reselling and low for agency selling. Given the business mode, under reselling, whether the platform introduces SB depends only on the brand preference, i.e., SB is introduced when the preference for NB is low. While under agency, he introduces SB in the general or relatively passive situation, depending both on the commission rate and the brand preference. In addition, four equilibrium sales modes are obtained based on the strategic interaction. In order to achieve a “win-win-win” situation in profitability among the manufacturer, the platform and the platform-based supply chain, the manufacturer should adopt agency selling and the platform forgoes introducing SB when both the commission rates and NB preference are low.","PeriodicalId":20872,"journal":{"name":"RAIRO Oper. Res.","volume":"11 1","pages":"2331-2362"},"PeriodicalIF":0.0,"publicationDate":"2023-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"84301373","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We examine an agricultural supply chain consisting of a core enterprise and a capital-constrained farmer and assess the yield uncertainty of farmer's production. We explore two kinds of financing models: traditional bank financing and government-enterprise guarantee financing. To coordinate the supply chain, a price commitment contract and a revenue-sharing contract are considered. Our results show that no matter in bank or government-enterprise guarantee financing model, we can find the conditions for full coordination of the supply chain with any contract. However, in the government-enterprise guarantee financing model, when a farmer has bankrupt risk in a low-yield season and no bankrupt risk in a high-yield season, the revenue-sharing contract can simultaneously make the supply chain fully coordinated and achieve Pareto improvement to maximize the profits of the entire supply chain and achieve a win-win situation. In addition, the farmer and enterprise prefer to choose the financing model with a higher promised price and a higher revenue-sharing ratio, and the social welfare under the government-enterprise guarantee financing model is higher than that under the traditional bank financing model.
{"title":"Financing and coordination of the agricultural supply chain considering government-enterprise guarantee","authors":"Qihui Lu, Changhua Liao, Tingting Xu","doi":"10.1051/ro/2023116","DOIUrl":"https://doi.org/10.1051/ro/2023116","url":null,"abstract":"We examine an agricultural supply chain consisting of a core enterprise and a capital-constrained farmer and assess the yield uncertainty of farmer's production. We explore two kinds of financing models: traditional bank financing and government-enterprise guarantee financing. To coordinate the supply chain, a price commitment contract and a revenue-sharing contract are considered. Our results show that no matter in bank or government-enterprise guarantee financing model, we can find the conditions for full coordination of the supply chain with any contract. However, in the government-enterprise guarantee financing model, when a farmer has bankrupt risk in a low-yield season and no bankrupt risk in a high-yield season, the revenue-sharing contract can simultaneously make the supply chain fully coordinated and achieve Pareto improvement to maximize the profits of the entire supply chain and achieve a win-win situation. In addition, the farmer and enterprise prefer to choose the financing model with a higher promised price and a higher revenue-sharing ratio, and the social welfare under the government-enterprise guarantee financing model is higher than that under the traditional bank financing model.","PeriodicalId":20872,"journal":{"name":"RAIRO Oper. Res.","volume":"30 1","pages":"2363-2392"},"PeriodicalIF":0.0,"publicationDate":"2023-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81305330","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Previous research has shown that retailers' operations and consumers' purchase choices are significantly influenced by reference prices. This study explores a retailer selling some new products to strategic consumers in advance selling, and addresses the impact of reference price effect on the advance selling strategy and corresponding pricing decisions. Consumers' choices are determined by their purchasing utilities which are dependent on the selling price in current period and the reference price. We first drive optimal selling prices and corresponding profits of the retailer under the scenarios of no advance selling, advance selling without considering the reference price effect, and advance selling with considering the reference price effect, respectively. We find an advance selling strategy is not always beneficial for the retailer. Besides, results present that the retailer benefits from considering reference price effects only if the positive reference effect is relatively high. Finally, numerical studies show that dynamic pricing is dominated by price commitment, which reaches the maximum when positive and negative reference effects parameters are both the highest.
{"title":"Optimal pricing strategy for new products considering reference price effect in advance selling","authors":"Wen Zhang, Yan Zhang, Xujin Pu, Zhenzhen Wang","doi":"10.1051/ro/2023102","DOIUrl":"https://doi.org/10.1051/ro/2023102","url":null,"abstract":"Previous research has shown that retailers' operations and consumers' purchase choices are significantly influenced by reference prices. This study explores a retailer selling some new products to strategic consumers in advance selling, and addresses the impact of reference price effect on the advance selling strategy and corresponding pricing decisions. Consumers' choices are determined by their purchasing utilities which are dependent on the selling price in current period and the reference price. We first drive optimal selling prices and corresponding profits of the retailer under the scenarios of no advance selling, advance selling without considering the reference price effect, and advance selling with considering the reference price effect, respectively. We find an advance selling strategy is not always beneficial for the retailer. Besides, results present that the retailer benefits from considering reference price effects only if the positive reference effect is relatively high. Finally, numerical studies show that dynamic pricing is dominated by price commitment, which reaches the maximum when positive and negative reference effects parameters are both the highest.","PeriodicalId":20872,"journal":{"name":"RAIRO Oper. Res.","volume":"3 1","pages":"2045-2066"},"PeriodicalIF":0.0,"publicationDate":"2023-07-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"86173812","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The Seidel spectrum of a graph is defined as the multiset of all eigenvalues of its Seidel matrix. Recently, there has been a renewed interest in studying Seidel spectrum of graphs and some achievements have been made in this regard. In this paper, we determine the Seidel spectra of some variants of corona operations, such as edge corona, subdivision-vertex corona, subdivision-vertex neighbourhood corona of two graphs and so on. The corresponding Seidel eigenvectors are also described completely. Applying the obtained results, we give some sufficient and necessary conditions for edge corona, subdivision-vertex corona and subdivision-vertex neighbourhood corona of two graphs to be Seidel integral.
{"title":"Seidel spectra of some variants of corona operations","authors":"Meiqun Cheng, Shu-Yu Cui, Gui-Xian Tian","doi":"10.1051/ro/2023104","DOIUrl":"https://doi.org/10.1051/ro/2023104","url":null,"abstract":"The Seidel spectrum of a graph is defined as the multiset of all eigenvalues of its Seidel matrix. Recently, there has been a renewed interest in studying Seidel spectrum of graphs and some achievements have been made in this regard. In this paper, we determine the Seidel spectra of some variants of corona operations, such as edge corona, subdivision-vertex corona, subdivision-vertex neighbourhood corona of two graphs and so on. The corresponding Seidel eigenvectors are also described completely. Applying the obtained results, we give some sufficient and necessary conditions for edge corona, subdivision-vertex corona and subdivision-vertex neighbourhood corona of two graphs to be Seidel integral.","PeriodicalId":20872,"journal":{"name":"RAIRO Oper. Res.","volume":"3 1","pages":"2113-2129"},"PeriodicalIF":0.0,"publicationDate":"2023-07-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78340705","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Esmaeel Farzadi, A. Hadi-Vencheh, Yong Tan, Zahra Gheleg Beigi
The empirical literature has tried to propose relevant data envelopment analysis (DEA) models to evaluate the efficiency level of the decision-making unit (DMU) in the presence of interval ratio data; however, the use of variable production frontier in the evaluation suffers from a number of limitations. The current study fills in the gap in the previous literature by proposing relevant DEA models based on interval arithmetic, through which the shortcomings of the previous existing studies have been overcome. The findings show that extra variable changes are not needed by the proposed model and a fixed, unified production frontier can be used to measure the DMUs’ efficiency with interval data. The potential application of the proposed model is illustrated through a numerical example in the banking industry.
{"title":"General and multiplicative non-parametric models with interval ratio data: application to the banking industry","authors":"Esmaeel Farzadi, A. Hadi-Vencheh, Yong Tan, Zahra Gheleg Beigi","doi":"10.1051/ro/2023103","DOIUrl":"https://doi.org/10.1051/ro/2023103","url":null,"abstract":"The empirical literature has tried to propose relevant data envelopment analysis (DEA) models to evaluate the efficiency level of the decision-making unit (DMU) in the presence of interval ratio data; however, the use of variable production frontier in the evaluation suffers from a number of limitations. The current study fills in the gap in the previous literature by proposing relevant DEA models based on interval arithmetic, through which the shortcomings of the previous existing studies have been overcome. The findings show that extra variable changes are not needed by the proposed model and a fixed, unified production frontier can be used to measure the DMUs’ efficiency with interval data. The potential application of the proposed model is illustrated through a numerical example in the banking industry.","PeriodicalId":20872,"journal":{"name":"RAIRO Oper. Res.","volume":"186 1","pages":"2315-2330"},"PeriodicalIF":0.0,"publicationDate":"2023-07-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"74175171","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
A set $D$ of vertices in a graph $G$ is an independent dominating set of $G$ if $D$ is an independent set and every vertex not in $D$ is adjacent to a vertex in $D$. The independent domination number of $G$, denoted by $i(G)$, is the minimum cardinality among all independent dominating sets of $G$. In this paper we show that if $T$ is a nontrivial tree, then $i(T)geq frac{n(T)+gamma(T)-l(T)+2}{4}$, where $n(T)$, $gamma(T)$ and $l(T)$ represent the order, the domination number and the number of leaves of $T$, respectively. In addition, we characterize the trees achieving this new lower bound.
{"title":"A new lower bound for the independent domination number of a tree","authors":"Abel Cabrera Martínez","doi":"10.1051/ro/2023100","DOIUrl":"https://doi.org/10.1051/ro/2023100","url":null,"abstract":"A set $D$ of vertices in a graph $G$ is an independent dominating set of $G$ if $D$ is an independent set and every vertex not in $D$ is adjacent to a vertex in $D$. The independent domination number of $G$, denoted by $i(G)$, is the minimum cardinality among all independent dominating sets of $G$. In this paper we show that if $T$ is a nontrivial tree, then $i(T)geq frac{n(T)+gamma(T)-l(T)+2}{4}$, where $n(T)$, $gamma(T)$ and $l(T)$ represent the order, the domination number and the number of leaves of $T$, respectively. In addition, we characterize the trees achieving this new lower bound.","PeriodicalId":20872,"journal":{"name":"RAIRO Oper. Res.","volume":"45 1","pages":"1951-1956"},"PeriodicalIF":0.0,"publicationDate":"2023-07-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80552544","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The conjugate gradient method (CG) is one of the most rapidly expanding and efficient ways for solving the unconstrained minimization problems. Recently, there has been a lot of effort into extending the CG approach to solve monotone nonlinear equations. For constrained monotone nonlinear equations, we describe a variation of the proposed method in this paper. The approach has a sufficient descent property, and its global convergence has been demonstrated with the help of some reasonable assumptions. Two sets of numerical tests were run to demonstrate the proposed method’s superior performance when compared to other methods. The initial experiment aimed to solve nonlinear equations with constraints, while in the second experiment, the method was applied to signal processing as well as issues with image recovery.
{"title":"Global convergence via modified self-adaptive approach for solving constrained monotone nonlinear equations with application to signal recovery problems","authors":"M. Abdullahi","doi":"10.1051/ro/2023099","DOIUrl":"https://doi.org/10.1051/ro/2023099","url":null,"abstract":"The conjugate gradient method (CG) is one of the most rapidly expanding and efficient ways for solving the unconstrained minimization problems. Recently, there has been a lot of effort into extending the CG approach to solve monotone nonlinear equations. For constrained monotone nonlinear equations, we describe a variation of the proposed method in this paper. The approach has a sufficient descent property, and its global convergence has been demonstrated with the help of some reasonable assumptions. Two sets of numerical tests were run to demonstrate the proposed method’s superior performance when compared to other methods. The initial experiment aimed to solve nonlinear equations with constraints, while in the second experiment, the method was applied to signal processing as well as issues with image recovery.","PeriodicalId":20872,"journal":{"name":"RAIRO Oper. Res.","volume":"48 1","pages":"2561-2584"},"PeriodicalIF":0.0,"publicationDate":"2023-07-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80897391","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Based on a Stackelberg game, this paper establishes supply chain models in which an incumbent manufacturer invests in advertising and the retailer invests in advertising when there is a new entrant manufacturer. By solving the model, the subgame perfect equilibrium under different conditions is obtained, and then the influences of the advertising coefficient and the degree of differentiation of two brands on the pricing decisions of supply chain members are investigated. The results show that: in the incumbent manufacturer advertising model, the wholesale prices and retail prices of the incumbent manufacturer and the encroaching manufacturer change as the advertising coefficient and the degree of differentiation of the two brands change. In the retailer’s advertising model, the wholesale prices, retail prices and profits of the incumbent manufacturer and the encroaching manufacturer are all higher than those of the benchmark model within the limited scope. Some valuable information could be provided for supply chain enterprises to develop collaborative strategies and promote supply chain management practices.
{"title":"Research on supply chain pricing decisions considering the advertising effect under market encroachment","authors":"Song Shi","doi":"10.1051/ro/2023084","DOIUrl":"https://doi.org/10.1051/ro/2023084","url":null,"abstract":"Based on a Stackelberg game, this paper establishes supply chain models in which an incumbent manufacturer invests in advertising and the retailer invests in advertising when there is a new entrant manufacturer. By solving the model, the subgame perfect equilibrium under different conditions is obtained, and then the influences of the advertising coefficient and the degree of differentiation of two brands on the pricing decisions of supply chain members are investigated. The results show that: in the incumbent manufacturer advertising model, the wholesale prices and retail prices of the incumbent manufacturer and the encroaching manufacturer change as the advertising coefficient and the degree of differentiation of the two brands change. In the retailer’s advertising model, the wholesale prices, retail prices and profits of the incumbent manufacturer and the encroaching manufacturer are all higher than those of the benchmark model within the limited scope. Some valuable information could be provided for supply chain enterprises to develop collaborative strategies and promote supply chain management practices.","PeriodicalId":20872,"journal":{"name":"RAIRO Oper. Res.","volume":"23 1","pages":"1713-1731"},"PeriodicalIF":0.0,"publicationDate":"2023-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78277804","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Our study aims to explore how traceability affects quality and price competition in a duopoly. A theoretical model is developed in which both enterprises are liable to recall low-quality products identified by traceability and compensate consumers for the disutility caused by unidentified low-quality products. The equilibrium results are derived by determining the optimal product quality and sales price decisions. The key findings are highlighted below. (1) Traceability affects product quality primarily through the expected social cost (the sum of expected recall cost and expected consumer disutility), i.e., higher (lower) expected social cost induced by increased traceability of each enterprise leads to higher (lower) product quality for both enterprises, enhancing (reducing) quality competition. (2) If an enterprise’s improved (decreased) product quality is driven by its own increased traceability, it will result in lower (higher) consumer demand and profit, while it will result in higher (lower) consumer demand and profit if caused by its competitor’s increased traceability. (3) If an enterprise’s increased traceability results in higher expected social cost, the enterprise’s sales price falls while the competitor’s sales price rises; otherwise, both enterprises’ sales prices fall, leading to greater price competition. (4) Quality competition is unaffected by product liability but is improved by increased recall cost and consumer disutility, whereas price competition is enhanced by increased consumer disutility but is reduced by increased product liability and recall cost. Managerial insights are also discussed.
{"title":"Quality and price competition in a duopoly under product liability and traceability","authors":"Jianchang Fan, Nana Wan, Zhun Li, H. Fu","doi":"10.1051/ro/2023096","DOIUrl":"https://doi.org/10.1051/ro/2023096","url":null,"abstract":"Our study aims to explore how traceability affects quality and price competition in a duopoly. A theoretical model is developed in which both enterprises are liable to recall low-quality products identified by traceability and compensate consumers for the disutility caused by unidentified low-quality products. The equilibrium results are derived by determining the optimal product quality and sales price decisions. The key findings are highlighted below. (1) Traceability affects product quality primarily through the expected social cost (the sum of expected recall cost and expected consumer disutility), i.e., higher (lower) expected social cost induced by increased traceability of each enterprise leads to higher (lower) product quality for both enterprises, enhancing (reducing) quality competition. (2) If an enterprise’s improved (decreased) product quality is driven by its own increased traceability, it will result in lower (higher) consumer demand and profit, while it will result in higher (lower) consumer demand and profit if caused by its competitor’s increased traceability. (3) If an enterprise’s increased traceability results in higher expected social cost, the enterprise’s sales price falls while the competitor’s sales price rises; otherwise, both enterprises’ sales prices fall, leading to greater price competition. (4) Quality competition is unaffected by product liability but is improved by increased recall cost and consumer disutility, whereas price competition is enhanced by increased consumer disutility but is reduced by increased product liability and recall cost. Managerial insights are also discussed.","PeriodicalId":20872,"journal":{"name":"RAIRO Oper. Res.","volume":"21 1","pages":"1913-1950"},"PeriodicalIF":0.0,"publicationDate":"2023-06-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81983844","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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