This paper studies a luxury sporting goods supply chain (LSGSC) experiencing trade disruption and market volatility We propose a flexible trade credit contract with minimum order quantity (MOQ) and design a coordination mechanism between a supplier and a loss-averse wholesaler We extend our study to a multi-tiered product setting and examine the impacts of social influences and loss aversion on SC decisions and channel coordination Given the gloomy post-Covid-19 economic prospects in an era of reglobalization, this study urges trade associations and business leaders to immunize their SCs by considering behavioral biases and social influences and revisiting their contractual obligations
Trade disruptions, behavioral biases, and social influences: Can luxury sporting goods supply chains be immunized?