The co-principal-anent models of manufacturer and retailer are built under the complete information and asymmetric information. In addition, the optimal profit sharing and the optimal fixed payment ratio are analyzed and compared in both situations. A motivate mechanism about service effort provided by the manufacturer towards the retailer in a dual-channel supply chain is studied. It implies that the profit of manufacturer under asymmetric information decreases dramatically contrasted to complete information and the retailer can gain profits by providing lower services, thus refusing deficiency of the supply chain.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.