Research On Supply Chain With Options Under Asymmetric Information

The option contract can effectively improve the performance of participants in the traditional supply chain.In these option contracts,call option contract can improve the flexibility of the supply chain by giving buyer upward adjustment right of the initial order.However,many scholars’research on options is based on information symmetry.Wagner（2015）proposed that information is a double-edged sword in the supply chain.It is not necessarily beneficial for a company to have information superiority,which may also lead to the reduction of corporate profits.In addition,the introduction of call options may pose risks to buyer.Therefore,this paper studies call option contract in both information symmetry and information asymmetry.Firstly,on the basis of demand forecast bias,this paper analyzes the retailer’s optimal purchase decisions and expected profit expression and the supplier’s expected profit expression both in newsboy model and call option model respectively in the case of information symmetry and information asymmetry.Secondly,this paper studies the possibility that retailer’s profit of using call option contract is lower than that of using newsboy model（namely,the risk brought by the introduction of call option contract）at the beginning of the sales season（₁t）.The measurement method and mathematical expression of risk are given.Finally,through examples analysis,the paper discusses the influence of information asymmetry on supply chain’s profit in call option contract model and analyzes the influence of different parameters on the change of profits of the supplier and risks of the buyer.Combined with the above analysis,the corresponding suggestions are given.By analyzing the supply chain’s profit and the buyer’s risk in call option model under both information symmetry and information asymmetry,it is concluded that although the change of some parameters（for example,product residual value of the supplier）can reduce the loss brought by information asymmetry,overall,the supply chain’s profits will be greatly reduced,and the buyer’s risk will greatly increase because of asymmetric information.