Online channel operation mode: game theoretical analysis from the supply chain power structures

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Document typeArticle
Defense date2015-12
PublisherOmniaScience
Rights accessOpen Access
Abstract
Purpose: Dual-channels have been widely used in practice, and the pricing decisions and the
online channel operation mode choice have been the core problems in dual-channel supply
chain management. This paper focuses on the online channel operation mode choice from the
supply chain power structures based on game theoretical analysis.
Design/methodology/approach: This paper utilizes three kinds of game theoretical models
to analyze the impact of supply chain power structures on the optimal pricing and online
channel operation mode choice.
Findings: Results derived in this paper indicate that when the self-price elasticity is large, the
power structures have no direct impact on the decisions. However, when the self-price elasticity
is small and customers’ preference for the online channel is low, then in the MS market, it is
better for the retailer to operate the online channel, while in the RS market or in the VN
market, it is better for the manufacturer to operate the online channel.
Research limitations/implications: In this paper, we do not consider stochastic demand and
asymmetric information, which may not well suit the reality.
Originality/value: This paper provides a different perspective to analyze the impact of supply
chain power structures on the pricing decisions and online channel operation mode choice. The
comparison of these two online channel operation modes in this paper is also a unique point.
CitationHuang, Song; Chen, Guocan; Ma, Yanan. Online channel operation mode: game theoretical analysis from the supply chain power structures. "Journal of Industrial Engineering and Management", Desembre 2015, vol. 8, núm. 5, p. 1602-1622.
DLB-28744-2008
ISSN2013-0953
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