Game theoretical perspectives on dual-channel supply chain competition with price discounts and pricing schemes

International Journal of Production Economics

Volumn 117, Issue 1, 2009, Pages 80-96

  Zhang, Zhe George ^b,c   Zhang, Michael ^d  

^a George)   (United States)

^b WESTERN WASHINGTON UNIVERSITY   (United States)

^c SIMON FRASER UNIVERSITY   (Canada)

^d SAINT MARY S UNIVERSITY   (Canada)

Author keywords

Channel competition; Channel coordination; Direct channel; Dual channel; Nash equilibrium; Optimal pricing; Stackelberg game

Indexed keywords

COMPETITION; CONTRACTS; GAME THEORY; SUPPLY CHAIN MANAGEMENT; SUPPLY CHAINS; TELECOMMUNICATION NETWORKS;

CHANNEL COMPETITION; CHANNEL COORDINATION; DIRECT CHANNEL; DUAL-CHANNEL; NASH EQUILIBRIUM; OPTIMAL PRICING; STACKELBERG GAME;

COSTS;

EID: 58049217317     PISSN: 09255273     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.ijpe.2008.08.053     Document Type: Article

References (37)

1. Allen, L., Cooperstein, D., Young, D., Oum, T., Lee, J., 2000. Channel conflict crumbles. The Forrester Report, March.
2. Alptekinoglu A., and Tang C.S. A model for analyzing multi-channel distribution systems. European Journal of Operational Research 163 3 (2005) 802-824
3. Balasubramanian S. Mail versus mall: A strategic analysis of competition between direct marketers and conventional retailers. Marketing Science 17 3 (1998) 181-195
4. Bernstein F., and Federgruen A. Decentralized supply chains with competing retailers under demand uncertainty. Management Science 51 1 (2005) 18-29
5. Bernstein F., Chen F., and Federgruen A. Coordinating supply chains with simple pricing schemes: The role of vendor-managed inventories. Management Science 52 10 (2006) 1483-1492
6. Bernstein, F., Song, J.-S., Zheng, X., 2006b. Free-riding in a multi-channel supply chain. Working Paper, Duke University.
7. Boyaci T. Competitive stocking and coordination in a multiple-channel distribution system. IIE Transactions 37 (2005) 407-427
8. Brooker K. E-rivals seem to have home depot awfully nervous. Fortune 140 16 (1999) 28-29
9. Cachon G. Supply chain coordination with contracts. In: Graves S., and de Kok T. (Eds). Handbooks in Operations Research and Management Science: Supply Chain Management (2003), North Holland, Amsterdam
10. Cachon G., and Lariviere M. Supply chain coordination with revenue sharing: Strengths and limitations. Management Science 51 1 (2005) 30-44
11. Cattani K., Gilland W., and Swaminathan J. Coordinating traditional and internet supply chains, in supply chain analysis in the eBusiness era. In: Simchi-Levi D., Wu D., and Shen M. (Eds). International Series in Operations Research and Management Science (2004), Kluwer Academic Publishers, Dordrecht
12. Cattani K., Gilland W., Heese S., and Swaminathan J. Boiling frogs: Pricing strategies for a manufacturer adding an internet channel. Production and Operations Management 15 1 (2006) 40-56
13. Chiang W.K., and Monahan G.E. Managing inventories in a two-echelon dual-channel supply chain. European Journal of Operational Research 162 2 (2005) 325-341
14. Chiang W.K., Chhajed D., and Hess J.D. Direct marketing, indirect profits: A strategic analysis of dual-channel supply chain design. Management Science 49 1 (2003) 1-20
15. Corstjens M., and Doyle P. Channel optimization in complex marketing systems. Management Science 25 10 (1979) 1014-1025
16. Dumrongsiri, A., Fan, M., Jain, A., Moinzadeh, K., 2007. A supply chain model with direct and retail channels. European Journal of Operational Research, forthcoming.
17. Ernst & Young, 2001. Global online retailing. An Ernst & Young Special Report.
18. Fairtrade, 2002. Fairtrade bananas-looking behind the price tag 〈http://www.fairtrade.org.uk〉.
19. Fruchter, G., Tapiero, C., 2005. Dynamic online and offline channel pricing for heterogeneous customers in virtual acceptance. International Game Theory Review, forthcoming.
20. Ho, T.-H., Zhang, J., 2004. Does format of pricing contract matter? University of California, Berkeley, Working Paper no. XL05-002.
21. Ingene C., and Parry M. Channel coordination when retailers compete. Marketing Science 14 Fall (1995) 360-377
22. Ingene, C., Parry, M., 2006. Bilateral monopoly, identical competitors/distributors, and game-theoretic analyses of distribution channels. Journal of the Academy of Marketing Science, forthcoming.
23. Jeuland A.P., and Shugan S.M. Managing channel profits. Marketing Science 2 3 (1983) 239-272
24. King R.C., Sen R., and Xia M. Impact of web-based e-commerce on channel strategy in retailing. International Journal of Electronic Commerce 8 3 (2004) 103-130
25. Kumar, N., Ruan, R., 2006. On complementing the retail channel with a direct online channel. Quantitative Marketing and Economics, forthcoming.
26. Lal R., and Sarvary M. When and how is the internet likely to decrease price competition. Marketing Science 18 4 (1999) 485-503
27. Liu Y., Gupta S., and Zhang Z.J. Note on self-restraint as an online entry-deterrence strategy. Management Science 52 11 (2006) 1799-1809
28. Netessine S., and Rudi N. Supply chain structures on the internet and the role of marketing operations interaction. In: Simchi-Levi D., Wu S.D., and Shen M. (Eds). Handbook of Quantitative Supply Chain Analysis: Modeling in the E-Business Era (2004), Kluwer Academic Publishers, Dordrecht
29. Rangan V.K. The channel decision: A model and an application. Marketing Science 6 2 (1987) 156-174
30. Rangan V.K., and Jaikumar R. Integrating distribution strategy and tactics: A model and an application. Management Science 37 11 (1991) 1377-1389
31. Taylor T. Coordination under channel rebates with sales effort effect. Management Science 48 8 (2002) 992-1007
32. Tsay A.A., and Agrawal N. Channel conflict and coordination in the e-commerce age. Production and Operations Management 13 1 (2004) 93-110
33. Tsay A.A., and Agrawal N. Modeling conflict and coordination in multi-channel distribution systems: A review. In: David Simchi-Levi S.D.W., and Shen Z.M. (Eds). Handbook of Quantitative Supply Chain Analysis: Modeling in the E-Business Era. International Series in Operations Research and Management Science (2005), Kluwer Academic Publishers, Norwell, MA 557-606
34. Tsay A.A., Nahmias S., and Agrawal N. Modeling supply chain contracts: A review. In: Tayur S., Ganeshan R., and Magazine M. (Eds). Quantitative Models for Supply Chain Management, International Series in Operations Research and Management Science vol. 17 (1999), Kluwer Academic Publishers, Norwell, MA 299-336
35. Wikipedia, 2007. Markup (business) 〈http://en.wikipedia.org/wiki/Markup_(business)〉.
36. Zettelmeyer F. Expanding to the internet: Pricing and communications strategies when firms compete on multiple channels. Journal of Marketing Research 37 3 (2000) 292-308
37. Zrike, K., Allen, L., Hamel, K., Sommer, J., Flemming, G., 2001. Channel cooperation pays off. The Forrester Report, May.