Research on Supply Chain Dynamic Coordination under Reference Effect

This paper introduced reference effect into supply chain composed with manufacturers and retailers, and built the game-theoretical model to decide the optimal discount price and order quantity. Considering the situation where the market demand is affected by spot price and reference price, we adopted dynamic programming and classical variation method to analyze the dynamic game equilibrium between manufacturer and retailer under reference effect is symmetric information and not, respectively. Finally, this paper analyzed the effect the reference to price, order quantity and profit of manufacturer with data analysis.