Abstract :
Notice of Retraction
After careful and considered review of the content of this paper by a duly constituted expert committee, this paper has been found to be in violation of IEEE´s Publication Principles.
We hereby retract the content of this paper. Reasonable effort should be made to remove all past references to this paper.
The presenting author of this paper has the option to appeal this decision by contacting TPII@ieee.org.
During the process of the credit sales, the enterprises always use cash discounts to give the buyer a certain concession according to the length of payment periods, in order to encourage the buyer to make a payment as early as possible and reduce the risk of credit sales. However, in the course of the credit sales, it is obvious that the buyer´s credit rating is the major factor in managing the credit risk. Therefore, based on the Incentive Compatibility Mechanism Design Theory, this paper not only establishes the corresponding sales discounts according to the buyer´s credit, but also performs a pricing analysis on them. In addition, under the premise of making basic assumptions for both sellers and buyers, it establishes the profit function and the constraints of the credit sale enterprises, and uses the optimal game theory to works out the buyer enterprises´ sales discount function, for providing a theoretical basis of making a reasonable credit sales decision.
Keywords :
game theory; incentive schemes; pricing; risk management; sales management; buyer enterprises sales discount function; buyers credit rating; cash discounts; credit sales decision; credit sales risk management; incentive compatibility mechanism design theory; optimal game theory; pricing analysis; profit function; sales discounts; Economics; Equations; Integrated circuits; Marketing and sales; Mathematical model; Pricing; Risk management;
