Abstract
Strategies of pricing based on Stackelberg competition between manufacturer and distributor are discussed under the condition that both traditional and online channels exist. A system consisting of a manufacturer, a distributor and customers is considered, in which the manufacturer can sell products to the distributor, who, in turn, sells the products to customers through traditional channel, or the manufacturer can transact directly with the customers in an electronic manner. The manufacturer and the distributor establish models with the respective objection of maximizing expected profit. The manufacturer regards the price of products sold to distributor through traditional and online channels as decision variables, while the distributor’s decision variable is the price of products sold to customers, and the distributor’s decision variable is the function of the manufacturer’s decision variable. At last, the numerical examples are used to show the application of pricing models.
Access provided by Autonomous University of Puebla. Download to read the full chapter text
Chapter PDF
Similar content being viewed by others
Keywords
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
References
Nagurney, A., Cruz, J., Dong, J.: Supply chain networks, electronic commerce, and supply side and demand side risk. European Journal of Operational Research 1, 120–142 (2005)
Nagurney, A., Loo, J., Dong, J.: Supply chain networks, electronic commerce: a theoretical perspective. Netnomics 2, 187–220 (2002)
Swaminathan, J., Tayur, S.: Models for supply chains in E-business. Management Science 10, 1387–1406 (2003)
Yao, D., Liu, J.: Competitive pricing of mixed retail and e-tail distribution channels. OMEGA 3, 235–247 (2005)
Ho, G., Seung, C., Hae, Y.: Is the internet making retail transactions more efficient? Comparison of online and offline CD retail markets. Electronic Commerce Research and Applications 2, 266–277 (2003)
Alok, G., Bochiuan, S., Zhiping, W.: Risk profile and consumer shopping behavior in electronic and traditional channels. Decision Support Systems 3, 347–367 (2004)
Chen, Z., Chen, Y., Zhou, F.: The optimizing management, 1st edn. Space Navigation Publishing House, Beijing (1988)
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2005 Springer-Verlag Berlin Heidelberg
About this paper
Cite this paper
Li, Lj., Huang, Xy., Yu, Lp., Xu, B. (2005). Pricing Strategy of Mixed Traditional and Online Distribution Channels Based on Stackelberg Game. In: Deng, X., Ye, Y. (eds) Internet and Network Economics. WINE 2005. Lecture Notes in Computer Science, vol 3828. Springer, Berlin, Heidelberg. https://doi.org/10.1007/11600930_68
Download citation
DOI: https://doi.org/10.1007/11600930_68
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-30900-0
Online ISBN: 978-3-540-32293-1
eBook Packages: Computer ScienceComputer Science (R0)