In this paper, we study the impacts of overconfidence in a competitive retailer setting of green fashion. We model a green fashion supply chain comprising one unbiased manufacturer and two biased retailers, to explore how overconfidence affects greenness level of fashion products and expected profit of retailers. An overconfident retailer has a cognitive bias in which it believes consumers are more sensitive to greenness of fashion products than it really is. Our findings show that the competition between two retailers discourages greenness level of fashion products, while overconfidence can provide a counterbalance to the negative impact caused by competition. We also find, a retailer’s overconfidence is not only conducive to the greenness level of its own fashion products, but also can benefit to its rival. Moreover, it shows a low level of overconfidence can be a comparative advantage of the retailer’s profit. Even though one of the retailers is unbiased and has an advantage of information, it can still earn less than its overconfident rival.
Keywords: Overconfidence, retail competition, Green fashion
@article{RO_2022__56_1_101_0,
author = {Cheng, Bayi and Wang, Yuqi and Shi, Xinyan and Zhou, Mi},
title = {Fashion retail competition on product greenness with overconfidence},
journal = {RAIRO. Operations Research},
pages = {101--114},
year = {2022},
publisher = {EDP-Sciences},
volume = {56},
number = {1},
doi = {10.1051/ro/2021178},
mrnumber = {4376290},
zbl = {1479.90126},
language = {en},
url = {https://www.numdam.org/articles/10.1051/ro/2021178/}
}
TY - JOUR AU - Cheng, Bayi AU - Wang, Yuqi AU - Shi, Xinyan AU - Zhou, Mi TI - Fashion retail competition on product greenness with overconfidence JO - RAIRO. Operations Research PY - 2022 SP - 101 EP - 114 VL - 56 IS - 1 PB - EDP-Sciences UR - https://www.numdam.org/articles/10.1051/ro/2021178/ DO - 10.1051/ro/2021178 LA - en ID - RO_2022__56_1_101_0 ER -
%0 Journal Article %A Cheng, Bayi %A Wang, Yuqi %A Shi, Xinyan %A Zhou, Mi %T Fashion retail competition on product greenness with overconfidence %J RAIRO. Operations Research %D 2022 %P 101-114 %V 56 %N 1 %I EDP-Sciences %U https://www.numdam.org/articles/10.1051/ro/2021178/ %R 10.1051/ro/2021178 %G en %F RO_2022__56_1_101_0
Cheng, Bayi; Wang, Yuqi; Shi, Xinyan; Zhou, Mi. Fashion retail competition on product greenness with overconfidence. RAIRO. Operations Research, Tome 56 (2022) no. 1, pp. 101-114. doi: 10.1051/ro/2021178
[1] and , Coordination mechanisms for supply chains under price and service competition. Manuf. Serv. Oper. Manage. 9 (2007) 242–262. | DOI
[2] , , and , Coordination mechanism for the supply chain with leadtime consideration and price-dependent demand. Eur. J. Oper. Res. 203 (2009) 70–80. | Zbl | DOI
[3] , , and , Joint pricing and production decisions with the overconfident sales agent. J. Syst. Manage. 25 (2016) 468–474.
[4] , , , , Optimal decision in MC supply chain with overconfident retailer based on the newsvendor model. RAIRO-Oper. Res. 55 (2021) 1325–1341. | MR | Numdam | Zbl | DOI
[5] and , Green spirit: consumer empathies for green apparel. Int. J. Consum. Stud. 38 (2014) 493–499. | DOI
[6] , Study on green ecology-oriented fashion design. Appl. Mech. Mater. 340 (2013) 179–184. | DOI
[7] , , and , Sustainable product development processes in fashion: supply chains structures and classifications. Int. J. Prod. Econ. 231 (2021) 0925–5273.
[8] , , , and , The sustainable clothing market: an evaluation of potential strategies for UK retailers. Int. J. Retail Distrib. Manage. 40 (2012) 935–955. | DOI
[9] , and , Green product development under competition: a study of the fashion apparel industry. Eur. J. Oper. Res. 280 (2020) 523–538. | MR | Zbl | DOI
[10] , , and , Impact of strategic cooperation under competition on green product manufacturing. Sustainability 12 (2020) 10248. | DOI
[11] and , Managerial optimism in a competitive market. Prod. Oper. Manage. Soc. 28 (2019) 833–846. | DOI
[12] , , and , Implications of green optimism upon sustainable supply chain management. Eur. J. Oper. Res. 295 (2021) 131–139. | MR | Zbl | DOI
[13] and , Fighting store brands through the strategic timing of pricing and advertising decisions. Eur. J. Oper. Res. 275 (2018) 635–647. | MR | Zbl | DOI
[14] , and , Fashion brand green demarketing: effects on customer attitudes and behavior intentions. J. Global Fashion Market. 9 (2018) 364–378. | DOI
[15] and , The overconfident and optimistic price-setting newsvendor. Eur. J. Oper. Res. 277 (2019) 166–173. | MR | Zbl | DOI
[16] , and , “I think I can, I think I can”: overconfidence and entrepreneurial behavior. J. Econ. Psychol. 28 (2007) 502–527. | DOI
[17] , , , , and , How to “Nudge” your consumers toward sustainable fashion consumption: an fMRI investigation. J. Bus. Res. 117 (2020) 642–651. | DOI
[18] , Overconfident distribution channels. Prod. Oper. Manage. Soc. 28 (2019) 1347–1365. | DOI
[19] and , , Overconfident competing newsvendors. Manage. Sci. 63 (2016) 2637–2646. | DOI
[20] , , and , Green product competition-diffusion considering consumer network. Syst. Eng. 36 (2018) 106–112.
[21] , and , Transshipment between overconfident newsvendors. Prod. Oper. Manage. Soc. 30 (2021) 2803–2813. | DOI
[22] , and , The supply chain coordination based on carbon reduction of overconfident manufacturer. J. Jiangxi Normal Univ. (Nat. Sci. Ed.) 42 (2018) 203–207.
[23] and , A bibliometric analysis of operations research and management science. Omega 73 (2016) 37–48. | DOI
[24] , , and , Product design scenarios for energy saving: a case study of fashion apparel. Int. J. Prod. Econ. 146 (2013) 392–401. | DOI
[25] , , The effects of ecolabels and environmental regulation on green product development. Manuf. Serv. Oper. Manage. 21 (2018) 519–535. | DOI
[26] , and , Sustainability efforts in the fast fashion industry: consumer perception, trust and purchase intention. Sustainability Accounting Manage. Policy J. 12 (2021) 571–590. | DOI
[27] and , Key themes and research opportunities in sustainable supply chain management-identification and evaluation. Omega 66 (2017) 195–211. | DOI
[28] and , Learning from the past to shape the future: a comprehensive text mining analysis of OR/MS reviews. Omega 100 (2020) 102388. | DOI
[29] , Ethical apparels-an innovative approach in fashion industry. ZENITH Int. J. Bus. Econ. Manage. Res. 4 (2014) 10–15.
[30] and , Consumer evaluations of trend imitation: brand equity, consumer attitudes and preference. J. Prod. Brand Manage. 26 (2017) 516–527. | DOI
[31] , and , The elusive green consumer. Harvard Bus. Rev. 97 (2019) 124–133.
[32] and , Ethical consumer behaviour in Germany: the attitude-behaviour gap in the green apparel industry. Int. J. Consum. Stud. 42 (2018) 419–429. | DOI
[33] , and , Supply chain inventory strategy considering quality control under decision-maker overconfidence perspective. Chin. J. Manage. Sci. 22 (2014) 59–65.
[34] , and , Research on supply chain incentive contract with an overconfident retailer under information asymmetry. Oper. Res. Manage. Sci. 23 (2014) 113–118.
[35] , and , Technology improvement strategy for green products under competition: the role of government subsidy. Eur. J. Oper. Res. 289 (2021) 553–568. | MR | Zbl | DOI
[36] and , The gain/loss-sharing buyback contract coordination for a supply chain with an overconfident retailer. J. Syst. Sci. Math. Sci. 35 (2015) 121–128. | MR | Zbl
[37] , , and , Research on ordering decision and coordination of overconfident retailer based on newsvendor model. Oper. Res. Manage. Sci. 21 (2012) 62–66.
[38] and , Green product design in supply chains under competition. Eur. J. Oper. Res. 258 (2017) 165–180. | MR | Zbl | DOI
[39] and , Green product diffusion: the impacts of asymmetric retailers’ strategic product decisions. RAIRO-Oper. Res. 55 (2021) 1459–1486. | MR | Numdam | Zbl | DOI
Cité par Sources :
