“…For analytical simplicity, following Arya et al (Chen, Wang and Jiang, 2015) For model simplicity, we assume that the demands in the two channels are linear in self-price and cross-price elasticity. This assumption is very common in operations management literature (Raju & Abhik, 2000;Yue & Liu, 2006;Kurata, Yao & Liu, 2007;Huang & Swaminathan, 2009;Hua et al, 2010;Huang et al, 2012;Huang et al, 2013;Chen et al, 2015). We further assume that the self-price elasticity and the cross-price elasticity are symmetric Chen et al, 2015).…”