Price competition for retailers with profit and revenue targets

Yang, Shilei; Shi, Chunming; Zhang, Yibin; Zhu, Jing

doi:10.1016/j.ijpe.2014.04.022

Cited by 22 publications

(15 citation statements)

References 36 publications

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“…The first is on the competition among core firms and upstream or downstream enterprises in the internal supply chain. This type of research is relatively rich in recent years, which may differ on one or more critical perspectives [7][8][9][10][11][12][13], such as pricing strategy [7][8][9], channel selection [8,10,11], network externality [11],demand uncertainty [11,12], product substitutability [13].The literature in the first research stream is relatively abundant and mature, both in the theoretical system and model methods, which can contribute to our analysis on the external competition and game for supply chain in this paper, but this research stream is not our focus.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Further research can be done by relaxing power structure assumption, e.g., considering one chain is the leader and another is the follower in Stackelberg game(like [19]). Moreover, the Hotelling model is used in our paper, another future research direction is to introduce a more general demand function (e.g., [9,11,17]) to verify the conclusions obtained in this model. In addition, we can also consider risk management and disruption.…”

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confidence: 95%

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Optimal Supply Chain Structural Choice under Horizontal Chain-to-Chain Competition

Wang

et al. 2018

Sustainability

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This paper investigates the horizontal Nash game and structure selection strategy in two competing dominant enterprises. Each firm decides whether to outsource the retail or manufacture to the exclusive third-party enterprise and thus forms a decentralized supply chain structure. On the premise that third-party enterprises have no advantage on sales and manufacture cost, the revenue-sharing contract is introduced between the manufacturer and retailer, and the influence of decentralized structure on the game equilibrium structure and supply chain profit is analyzed based on Hotelling model. The results show that, when compared with centralized structure, decentralized supply chain has the structural advantage to improving not only its supply chain profits but also the competing chain. This interesting insight is counterintuitive to the common "double marginalization" effect and explains the outsourcing strategy from the perspective of supply chain competition. In addition, we find the dominant strategy in the evolutionary game is that both two chains are decentralized or integrated.

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Section: Literature Reviewmentioning

confidence: 99%

mentioning

confidence: 95%

Optimal Supply Chain Structural Choice under Horizontal Chain-to-Chain Competition

Wang

et al. 2018

Sustainability

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“…Network platforms are focusing on providing consumers with a better shopping experience and enhancing customer stickiness. However, in traditional supply chains, retailers wholesale products from manufacturers and set different sales prices to attract consumers in the sales process [42][43][44][45].…”

Section: Model Explanation and Assumptionsmentioning

confidence: 99%

Different Dominant Models and Fairness Concern of E‐Supply Chain

Wang

Shen

et al. 2018

Complexity

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In this study, we examine the impact of the dominant enterprise’s fairness concern on decisions in e-supply chains. Considering that the network platform’s service level obviously influences product sales, an e-supply chain consisting of a single manufacturer and a single network platform is constructed. In this setting, four models of whether fairness concern is considered by the different dominant parties are investigated, and optimal decisions of the four models are compared and analyzed to study the impact of fairness concern. The findings show that when fairness concern is not taken into account, the profits when enterprises are dominating system are higher than when they are not dominating system. When fairness concern is considered, the dominant enterprise’s fairness concern is beneficial to increase the subordinate enterprise’s profit, but it will reduce its profit. And when the network platform dominates system and considers fairness concern, the sales price and the service level are the highest, indicating that consumers can get an enjoyable shopping experience. To sales price, it is negatively correlated with the fairness concern coefficient if manufacturer dominates the system, while it is positively correlated with the fairness concern coefficient if network platform dominates the system. Regardless of who has the fairness concern, fairness concern can improve the service level and increase consumer stickiness.

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“…Among the different forms of competition, price competition is the most common form [22]. In our work, we consider Bertrand competition model for price competition between online and the traditional channels.…”

Section: Demand Functionsmentioning

confidence: 99%

Influence of customer acceptance of online sales channel on firm profits under channel competition

Rofin

Mahanty

2015

2015 International Conference on Advances in Computing, Communications and Informatics (ICACCI)

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This paper focuses on the influence of customer acceptance of online sales channel on the profit of firms when the online and the traditional 'Brick and Mortar' channels compete. Profit is calculated when the channels are engaged in Bertrand competition and when the channels are integrated. Influence of customer acceptance of online channel on the firm profit is analyzed for different categories of products. Firms enjoy better profits when the channels are integrated for those products for which customer acceptance of online channel is high.

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Price competition for retailers with profit and revenue targets

Cited by 22 publications

References 36 publications

Optimal Supply Chain Structural Choice under Horizontal Chain-to-Chain Competition

Optimal Supply Chain Structural Choice under Horizontal Chain-to-Chain Competition

Different Dominant Models and Fairness Concern of E‐Supply Chain

Influence of customer acceptance of online sales channel on firm profits under channel competition

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