Dollar vs. percentage markup pricing schemes under a dominant retailer

European Journal of Operational Research

Volumn 227, Issue 3, 2013, Pages 471-482

  Wang, Jian Cai ^a   Lau, Amy Hing Ling ^b   Lau, Hon Shiang ^b  

^a BEIJING INSTITUTE OF TECHNOLOGY   (China)

^b UNIVERSITY OF HONG KONG   (Hong Kong)

Author keywords

Dominant retailer; Double marginalization; Markup pricing; Newsvendor product; Pricing

Indexed keywords

COMPARATIVE PERFORMANCE; DEMAND CURVES; DOMINANT RETAILERS; DOUBLE MARGINALIZATION; MARK-UP PRICING; NEWSVENDOR PRODUCTS; PRICING SCHEME; WHOLE SALE PRICES;

COSTS; STOCHASTIC SYSTEMS;

SALES;

EID: 84875462164     PISSN: 03772217     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.ejor.2012.12.022     Document Type: Article

References (45)

1. E. Adida, and N. Ratisoontorn Consignment contracts with retail competition European Journal of Operational Research 215 1 2011 136 148
2. F.J. Arcelus, and G. Srinivasan Inventory policies under various optimizing criteria and variable markup rates Management Science 33 6 1987 756 762
3. F.J. Arcelus, S. Kumar, and G. Srinivasan Pricing and rebate for the newsvendor problem in the presence of a stochastic redemption rate International Journal of Production Economics 107 2 2007 467 482
4. J. Chen, and P.C. Bell The impact of customer returns on pricing and order decisions European Journal of Operational Research 195 1 2009 280 295
5. K.B. Chen, and T.J. Xiao Demand disruption and coordination of the supply chain with a dominant retailer European Journal of Operational Research 197 1 2009 225 234
6. H.Y. Chen, Y.H. Chen, C.H. Chiu, T.M. Choi, and S. Sethi Coordination mechanism for the supply chain with leadtime consideration and price-dependent demand European Journal of Operational Research 203 1 2010 70 80
7. C.H. Chiu, T.M. Choi, and C.S. Tang Price, rebate, and returns supply contracts for coordinating supply chains with price-dependent demands Production and Operations Management 20 1 2011 81 91
8. S.C. Choi Price competition in a channel structure with a common retailer Marketing Science 10 4 1991 271 296
9. Clower, R.W.; Graves, P.E.; Sexton, R.L.; 1988. Intermediate Microeconomics. Harcourt Brace Jovanovich, San Diego, California.
10. H. Emmons, and S.M. Gilbert The role of returns policies in pricing and inventory decisions of catalog goods Management Science 44 2 1998 276 283
11. G. Ertek, and P.M. Griffin Supplier- and buyer-driven channels in a two-stage supply chain IIE Transactions 34 8 2002 691 700
12. E. Gal-Or First mover and second mover advantages International Economic Review 26 3 1985 649 653
13. T. Geylani, A.J. Dukes, and K. Srinivasan Strategic manufacturer response to a dominant retailer Marketing Science 26 2 2007; 164 178
14. D. Granot, and S.Y. Yin On he effectiveness of returns policies in the price-dependent newsvendor model Naval Research Logistics 52 8 2005 765 779
15. D. Granot, and S.Y. Yin On sequential commitment in the price-dependent newsvendor model European Journal of Operational Research 177 2 2007 939 968
16. D. Gupta, A.V. Hill, and T. Bouzdine-Chameeva A pricing model for clearing end-of-season retail inventory European Journal of Operational Research 170 2 2006 518 540
17. C. He, J. Marklund, and T. Vossen Vertical information sharing in a volatile market Marketing Science 27 3 2008 513 530
18. C.C. Hsieh, and Y.T. Lu Manufacturer's return policy in a two-stage supply chain with two risk-averse retailers and random demand European Journal of Operational Research 207 1 2010 514 523
19. A. Irmen Mark-up pricing and bilateral monopoly Economic Letters 54 2 1997 179 184
20. A.P. Jeuland, and S.M. Shugan Channel of distribution profits when channel members from conjectures Marketing Science 7 2 1988 202 210
21. L. Jiang The implications of postponement on contract design and channel performance European Journal of Operational Research. 216 2 2012 356 366
22. T.V. Krishnan, and H. Soni Guaranteed profit margins: a demonstration of retailer power International Journal of Research in Marketing 14 1 1997 35 56
23. A.H.L. Lau, and H.S. Lau Effects of a demand-curve's shape on the optimal solutions of a multi-echelon inventory/pricing model European Journal of Operational Research 147 3 2003 530 548
24. A.H.L. Lau, H.S. Lau, and Y.W. Zhou Considering asymmetrical manufacturing cost information in a two-echelon system that uses price-only contracts IIE Transactions 38 3 2006 253 271
25. A.H.L. Lau, H.S. Lau, and J.C. Wang How a dominant retailer might design a purchase contract for a newsvendor-type product with price-sensitive demand? European Journal of Operational Research 190 2 2008 443 458
26. D.M. Lewison, and M.W. DeLozier Retailing 1989 Merrill Publishing, Co. Columbus, Ohio
27. X. Li, and Q. Wang Coordination mechanisms of supply chain systems European Journal of Operational Research 179 1 2007 1 16
28. X.C. Liu, and S. Cetinkaya Designing supply contracts in supplier vs buyer-driven channels: the impact of leadership, contract flexibility and information asymmetry IIE Transactions 41 8 2009 687 701
29. Y. Liu, M.J. Fry, and A.S. Raturi Vertically restrictive pricing in supply chains with price-dependent demand Naval Research Logistics 53 6 2006 485 501
30. Y. Liu, M.J. Fry, and A.S. Raturi Retail price markup commitment in decentralized supply chain European Journal of Operational Research 192 1 2009 277 292
31. M. Nagarajan, and G. Sošić Game-theoretic analysis of cooperation among supply chain agents: review and extensions European Journal of Operational Research 187 2006 719 745
32. T.T. Nagle, and J.E. Hogan The Strategy and Tactics of Pricing: A Guide to Growing More Profitably 2006 Pearson/Prentice Hall Upper Saddle River, New Jersey
33. P.M. Noble, and T.S. Gruca Industrial pricing: theory and managerial practice Marketing Science 18 3 1999 435 454
34. N.C. Petruzzi, and M. Dada Pricing and the newsvendor problem: a review with extensions Operations Research 47 2 1999 183 194
35. J. Raju, and Z.J. Zhang Channel coordination in the presence of a dominant retailer Marketing Science 24 2 2005 254 262
36. J. Ru, and Y.Z. Wang Consignment contracting: who should control inventory in the supply chain European Journal of Operational Research 201 3 2010 760 769
37. M. Salinger, and M. Ampudia Simple economics of the price-setting newsvendor problem Management Science 57 11 2011 1996 1998
38. J. Tirole The Theory of Industrial Organization 1988 MIT Press Cambridge, Massachusetts
39. W.G. Tomek, and K.L. Robinson Agricultural Product Prices 1981 Cornell University Press Ithaca, New York
40. A.A. Tsay Risk sensitivity in distribution channel partnership: implications for manufacturer return policies Journal of Retailing 78 2 2002 147 160
41. R.K. Tyagi Do strategic conclusions depend on how price is defined in models of distribution channels? Journal of Marketing Research 42 2 2005 228 232
42. T. Von Ungern-Sternberg Percentage retail mark-ups Swiss Journal of Economics and Statistics 35 4 1999 539 557
43. Y.Z. Wang, L. Jiang, and Z. Shen Channel performance under consignment contract with revenue sharing Management Science 50 1 2004 34 47
44. M. Zhang, and P.C. Bell The effect of market segmentation with demand leakage between market segments on a firm's price and inventory decisions European Journal of Operational Research 182 2 2007 738 754
45. M. Zhang, P.C. Bell, G.S. Cai, and X.F. Chen Optimal fences and joint price and inventory decisions in distinct markets with demand leakage European Journal of Operational Research 204 3 2010 589 596