Please use this identifier to cite or link to this item: http://hdl.handle.net/10397/31816
Title: A value-based approach to option pricing: The case of supply chain options
Authors: Zhao, Y
Yang, L
Cheng, TCE 
Ma, L
Shao, X
Keywords: Option contract
Spot market
Supply chain management
Value-based pricing
Issue Date: 2013
Publisher: Elsevier
Source: International journal of production economics, 2013, v. 143, no. 1, p. 171-177 How to cite?
Journal: International journal of production economics 
Abstract: The pricing issue of supply chain options is generally considered in the Stackelberg game framework in the literature. Such a pricing scheme, however, is usually unacceptable to the follower in the game since it serves only the leader's interest. Different from the existing literature, we develop in this paper a value-based pricing scheme for supply chain options. We present the option pricing schemes for the cases of a single retailer and multiple retailers, respectively. The intuition behind our pricing schemes is to price the option based on the value inherent in the option right. As a result, our pricing schemes are more objective and fair, and consequently are more likely to be accepted by the contracting partners as compared with those that follow the Stackelberg game approach.
URI: http://hdl.handle.net/10397/31816
ISSN: 0925-5273
DOI: 10.1016/j.ijpe.2013.01.004
Appears in Collections:Journal/Magazine Article

Access
View full-text via PolyU eLinks SFX Query
Show full item record

SCOPUSTM   
Citations

6
Last Week
0
Last month
0
Citations as of Aug 14, 2017

WEB OF SCIENCETM
Citations

5
Last Week
0
Last month
0
Citations as of Aug 4, 2017

Page view(s)

36
Last Week
1
Last month
Checked on Aug 13, 2017

Google ScholarTM

Check

Altmetric



Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.