Risk-Averse Suppliers’ Optimal Pricing Strategies in a Two-Stage Supply Chain

<table>Optimal wholesale prices <svg height="17.825001" id="M353" style="vertical-align:-3.27605pt" version="1.1" viewbox="0 0 17.237499 17.825001" width="17.237499" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink">
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q0 16 13.5 31.5t28.5 15.5q12 0 17 -11q5 -10 25 -10q22 0 57.5 36t89.5 111l-40 108q-22 58 -36 58q-21 0 -67 -57l-19 20q81 107 125 107q17 0 30 -22t39 -88l22 -55q68 92 108.5 128.5t74.5 36.5q20 0 32.5 -14t12.5 -30z" id="x1D465"></path></g>
<g transform="matrix(.012,-0,0,-.012,9.563,5.525)"><path d="M471 153q-22 -15 -61 -13q-25 31 -45.5 49.5t-56.5 41.5q4 -71 28 -134q-17 -33 -42 -46q-24 12 -42 46q24 63 28 134q-36 -23 -56.5 -41.5t-45.5 -49.5q-36 -2 -61 13q0 28 19 59q65 10 130 43q-65 33 -130 43q-19 31 -19 59q22 15 61 13q25 -31 45.5 -49.5t56.5 -41.5
q-4 71 -28 134q17 33 42 46q24 -12 42 -46q-24 -63 -28 -134q36 23 56.5 41.5t45.5 49.5q36 2 61 -13q0 -28 -19 -59q-65 -10 -130 -43q65 -33 130 -43q19 -31 19 -59z" id="x2217"></path></g><g transform="matrix(.012,-0,0,-.012,9.563,17.763)"><path d="M384 0h-275v27q67 5 81.5 18.5t14.5 68.5v385q0 38 -7.5 47.5t-40.5 10.5l-48 2v24q85 15 178 52v-521q0 -55 14.5 -68.5t82.5 -18.5v-27z" id="x31"></path></g>
</svg> for different confidence level <svg height="7.9499998" id="M354" style="vertical-align:-0.1638pt" version="1.1" viewbox="0 0 9.7749996 7.9499998" width="9.7749996" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink">
<g transform="matrix(.017,-0,0,-.017,.062,7.675)"><path d="M545 106q-67 -118 -134 -118q-24 0 -40 37.5t-30 129.5h-2q-47 -72 -103 -119.5t-108 -47.5q-47 0 -76 45.5t-29 119.5q0 113 85 204t174 91q47 0 70 -33.5t43 -119.5h3q32 47 80 140l55 13l10 -9q-47 -80 -138 -201q17 -99 27.5 -136t22.5 -37q23 0 69 61zM333 204
q-14 98 -31 149.5t-50 51.5q-49 0 -94 -70t-45 -164q0 -55 15.5 -86t40.5 -31q70 0 164 150z" id="x1D6FC"></path></g>
</svg>.</table>

Discrete Dynamics in Nature and Society

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Figure 2

Figure 2: Risk-Averse Suppliers’ Optimal Pricing Strategies in a Two-Stage Supply Chain 