Optimal supplier switching with volume-dependent switching costs

Advertising investment under switching costs

“…In theory, much literature focuses on the relationship between price and switching costs (Blut et al, 2015;Nie, 2018;Nie et al, 2018a;Zhang et al, 2015), innovation and switching costs (Nie et al, 2018b;Yang et al, 2018), outputs and switching costs and so on (Nie et al, 2021;Xiao et al, 2020). Almost all previous papers before 2009 argue that switching costs result in price increases.…”

An optimal control method for fuzzy supplier switching problem

“…Lf€ ofler [15] applied a real option approach to examine how asymmetric information alters key variables of a firms supplier switching process. Zhang [16] constructed an optimal supplier switching principal-agent model where switching cost was dependent on the switching volume, it was shown that for a concave switching cost function the optimal switching takes the form of all-or-nothing switching may take the form of switching strategy, and for a convex switching cost function the optimal nonlinear partial switching strategy. In the above supplier switching papers, the reported cost is in the random environment.…”

Incentive contract design for supplier switching with considering learning effect

“…While the buyer would benefit from switching to the entrant supplier via a lower price, it will also incur a corresponding switching cost [36]. Therefore, the buyer needs to make a trade-off in obtaining a lower price and undertaking a corresponding switching cost when making the switching decisions.…”

“…[10] studied a firm's cost-based sourcing decision of whether to invest in an incumbent supplier or switch to an alternative supplier in order to realize lower purchase costs. [36] constructed a supplier switching model based on the principalagent theory to minimize the buyer's purchase cost. They found that the forms of the optimal supplier switching strategies are directly related to the concavity and convexity of the switching cost functions.…”

“…When the buyer decides to purchase from S 2 , she will incur a switching cost. As argued in [36], the switching cost s is modeled as switching volume-dependent, namely,…”