Study on the complexity of channel pricing game in showrooming O2O supply chain

Abstract

An O2O supply chain consisting of a manufacturer with online direct channel and a retailer who resells through a brick-and-mortar store is considered. Three channel power structures (vertical Nash, manufacturer Stackelberg and retailer Stackelberg) and three pricing sequences (simultaneous pricing, manufacturer pricing early, retailer pricing early) are considered. Counter-intuitively, under the manufacturer Stackelberg structure, the retailer has a first-mover advantage and retailer-pricing-early achieves Pareto optimality. In the other cases, the manufacturer and the retailer have a late-mover advantage. Under the vertical Nash structure, both parties may get into prisoner’s dilemma. Extending the basic model to dynamic pricing, we found that the first mover of sequential pricing has better stability. The retailer Stackelberg structure has better stability than the vertical Nash structure and the manufacturer Stackelberg is the most unstable power structure. To avoid the negative impact of equilibrium price instability, the vertical and horizontal price matching mechanisms are proposed and the effectiveness in improving stability is proved.

Price strategy of community fresh food e-commerce considering the heterogeneous needs of consumers and fresh quality transparency

“…The analysis shows that collaborative cold chain investment and collaborative pricing are the optimal strategies of the supply chain. Strong consumer awareness of food safety can promote mutual cooperation among supply chain members, strengthen cold chain investment, and realize the improvement of supply chain members' profits [11,32,[35][36][37]. Research also suggests that enhancing consumer trust enhances their willingness to purchase fresh food [3].…”

“…After considering the FQT, in this study, considering the complexity of defining the information transparency model, it do not discuss the range of transparency values. In this study, it mainly referred to the literature [36,37], and randomly assigned values to the corresponding parameters that satisfy the constraints in equations ( 5), ( 6), (15), and ( 16) while also meeting the negative definiteness condition of the Hesse matrix, in order to obtain the corresponding results. According to 𝑝 1 ≤ 𝜑𝜐+𝑏1𝜃+𝑐𝐿 𝑎1 and 𝑝 2 ≤ 𝜐+𝑏2𝜃+𝑐𝐿 𝑎2 , the relevant parameters are set as 𝜐 = 0.8, 𝜑 = 0.8, 𝑎 1 = 0.9, 𝑎 2 = 0.5, 𝑏 1 = 𝑏 2 = 0.2, 𝜃 = 0.1, 𝑐 = 0.7, 𝐿 continuously takes an integer in the range of 0.1-0.9, and the results are shown in Figure 3.…”