This paper develops a dynamic pricing model to examine how strategic consumers affect the strategic interaction among firms under three dual‐channel formats, that is, direct selling dual‐channel, reselling dual‐channel, and agency selling dual‐channel. The results show that the retailer's selling prices display nonmonotonic relations to the acceptance of electronic channel. When strategic consumers have high patience, all firms prefer to decrease prices in both periods. The interaction of the acceptance of electronic channel and discount factor mediate the optimal mode choice for the firms. In most cases, the reselling dual‐channel and agency selling dual‐channel format are preferable for the retailer and the e‐retailer, respectively.
This paper addresses the operational decisions and coordination of the supply chain in the presence of risk aversion, where the risk averse retailer’s performance is measured by a combination of the expected profit and conditional value-at-risk (CVaR). Such performance measure reflects the desire of the retailer to maximize the expected profit on one hand and to control the downside risk of the profit on the other hand. The impact of risk aversion on the supply chain’s decision and performance is also explored. To overcome the inefficiency due to the double marginalization and the aggravation resulting from risk aversion, we investigate the buy-back contract to coordinate the supply chain. Such contract can largely increase the supply chain’s profit, especially when the retailer is more risk averse. Lastly, we extend such risk measure to the widely-used business model nowadays — platform selling model, and explore the impact of the allocation rule on the manufacturer’s decision.
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