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Nominal effect vs actual effect: overconfidence in a consignment omnichannel

Author

Listed:
  • Zhisong Chen

    (Nanjing Normal University
    New York University)

  • Chaonan Tang

    (Nanjing Normal University)

  • Jianhui Peng

    (Shanghai Normal University)

Abstract

The overconfident behavior brings about serious decision biases to the consignment omnichannel, which will invariably lead to false prosperity and poor actual performance eventually. This paper tries to explore the nominal and actual effects and corresponding countermeasures of overconfident behavior issues in a consignment omnichannel through game-theoretical modelling and numerical and sensitivity analyses. The research results show that: (1) from the perspective of nominal effect, the full-overconfidence scenario performs best among all three scenarios. (2) from the perspective of actual effect, the non-overconfidence scenario performs best among all three scenarios. (3) reducing the degree of overconfidence will improve the actual operational performance of the consignment omnichannel.

Suggested Citation

  • Zhisong Chen & Chaonan Tang & Jianhui Peng, 2023. "Nominal effect vs actual effect: overconfidence in a consignment omnichannel," Electronic Commerce Research, Springer, vol. 23(2), pages 843-876, June.
    • Handle: RePEc:spr:elcore:v:23:y:2023:i:2:d:10.1007_s10660-021-09493-w
    DOI: 10.1007/s10660-021-09493-w
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    References listed on IDEAS

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    Cited by:

    1. Pei-Ju Wu, 2023. "O2O switching determinants and successful drivers in omnichannel retailing services," Service Business, Springer;Pan-Pacific Business Association, vol. 17(3), pages 771-788, September.

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