Supply Chain Related Contracts Analysis And Experimental Research Based On Bargaining Theory

The member of the supply chain belong to different economic entities, therefore, they are to maximize their own objectives when they make decisions. So the supply chain face "double marginalization effect". They need the supply chain contracts to coordinate the interests of all parties in the supply chain relationships, to achieve supply chain collaboration, and to ensure the profits of each member is equal to the optimal integration of supply chain profit. This paper based on previous studies, and supply chain related contracts-the wholesale price contracts, buy-back contracts and revenue sharing contract as the research object, using bargaining game theory and management experimental analysis, it can tell the supplier and retailer how to bargain when they sign a contract. The details are as follows.At the beginning, this article introduces the supply chain contract, the bargaining game, and some knowledge of economic experiments, so that the readers can have an understanding of the knowledge to understand this article.Then I use the bargaining theory and experimental methods to research supply chain related contracts-the wholesale price contracts, buy-back contracts and revenue sharing contract. And I get the following conclusions.1. In the bargaining situation, the wholesale price contract can coordinate the supply chain, but it has something to do with the bargain bid. Once supply chain realize the coordination, it can optimize the total revenue, then the supplier and retailer will get the bigger benefits than what they get under the situation of non-bargaining. Because the benefits of the supplier and retailer are related to the wholesale price and the order quantity, so we can get the optimal wholesale price and order quantity after we know the benefits.2. After a lot of experiments in the future, we can obtain the bidding rules and yield curve of the supplier and retailer in the bargaining situation through statistical methods, and it can tell the supplier and retailer how to bargain when they sign a contract in the future.