Notation | Meaning | Notation | Meaning |
p | Retail price | R | Retailers |
w | Wholesale Price | M | Supplier |
c q | Production cost Order quantity |
N | SC optimal order neutral risk |
v s g | Salvage value Shortage cost Buyback price |
U(*) π(*) | Retailer optimal order utility function benefit function |
| Loss aversion | E[U(*)] | Expect utility function |