Pricing decisions for substitutable products with a common retailer in fuzzy environments

The pricing problem of substitutable products in a fuzzy supply chain is analyzed by using game theory in this paper. There are two substitutable products produced by two competitive manufacturers respectively and then sold by one common retailer to the consumers. Both the manufacturing cost and the customer demand for each product are characterized as fuzzy variables. How the two manufacturers and the common retailer make their own pricing decisions about wholesale prices and retail prices are explored under four different scenarios, and the corresponding expected value models are developed in this paper. Finally, a numerical example is given to illustrate the effectiveness of the proposed supply chain models.     

价格竞争下风险规避对闭环供应链决策的影响研究

基于零售商销售价格与回收价格竞争情形,构建了一个可持续的闭环供应链.考虑决策者风险规避行为,研究了闭环供应链成员的定价决策问题.利用博弈论,在风险中性与风险规避特性下分别探讨了批发价格,零售价格和回收价格的最优决策,并建立了它们的表达式.研究结论表明,仅当零售商具有风险规避时,制造商决策不受零售商的影响,而仅当制造商具...     

Customer rebates and retailer incentives in the presence of competition and price discrimination

Promotions are important tools for matching supply and demand in many industries. In the United States automotive industry, promotions are frequently offered, which may be given directly to customers (rebates) or given to dealers (incentives) to stimulate demand. We analyze the performance of customer rebate and retailer incentive promotions under competition. We study a setting with two manufacturers making simultaneous pricing and promotion decisions, and with two price-discriminating retailers as Stackelberg followers making simultaneous order quantity decisions. In the benchmark case with no promotions, we characterize the equilibria in closed form. We find that retailer incentives can be used by manufacturers to simultaneously improve each of their profits but can potentially lead to lower retailer profits. When manufacturers use customer rebates, we show that a manufacturer is able to decrease the profit of her competitor while increasing her own profit, although she is also at risk for her competitor to use rebates in a similar fashion. Unlike the monopoly case where the manufacturers are always better off with retailer incentives, customer rebates can be more profitable under some cases in the presence of competition. Using numerical examples we generate insights on the manufacturers’ preference of promotions in different market settings.     

Pricing decisions for complementary products with firms’ different market powers

This article reports the results of a study that explores the pricing problems with regard to two complementary products in a supply chain with two manufacturers and one common retailer. The authors establish five pricing models under decentralized decision cases, including the MS-Bertrand, MS-Stackelberg, RS-Bertrand, RS-Stackelberg, and NG models, with consideration of different market power structures among channel members. By applying a game-theoretical approach, corresponding analytic solutions are obtained. Then, by comparing the maximum profits and optimal pricing decisions obtained in different decision cases, interesting and valuable managerial insights are established.     

Stackelberg game models between two competitive retailers in fuzzy decision environment

In this paper, we study the pricing problem in a fuzzy supply chain that consists of a manufacturer and two competitive retailers. There is a single product produced by a manufacturer and then sold by two competitive retailers to the consumers. The manufacturer acting as a leader determines the wholesale price, and the retailers acting as the followers set their sale prices independently. Both the manufacturing cost and the demand for product are characterized as fuzzy variables, we analyze how the manufacturer and the retailers make their pricing decisions with the duopolistic retailers’ different behaviors: competition strategy and collusion strategy, and develop the expected value models in this paper. Finally, numerical examples illustrate the effectiveness of the proposed two-echelon models using fuzzy set theory.     

Differential game approach to pricing and advertising decisions

This study proposes a model to make concurrent decisions on dynamic pricing and advertising to maximise firms' profitability over an infinite time horizon in a duopoly market. To this end, the Nerlove-Arrow pricing and advertising model is designed in the presence of shifting costs in a dynamic duopolistic competition as a differential game. The Nash equilibrium solution is defined based upon a set of Hamilton–Jacobi–Bellman. Four scenarios are applied for economic interpretations and the efficacy of the model.     

低碳环境下供应链差异化定价与协调机制研究

以低碳和普通产品两个制造商和一个零售商组成的两级供应链系统为研究对象,探讨了供应链的差异化定价与协调机制问题。求解得到了两制造商和零售商的最优定价策略及可行的低碳产品生产成本范围。研究发现:1)分散决策的差异化定价策略无法达到供应链协调;2)在可行的低碳产品生产成本范围内,低碳产品制造商、零售商和整个供应链系统的利润都随低碳产品生产成本的增加而减少,只有普通产品制造商的利润随低碳产品生产成本的增加而增加。因此,降低低碳产品生产成本是促进低碳产品推广的关键。针对分散决策造成供应链效率损失的情况,采用Shapley值法进行协调,并给出了契约协调机制。最后,通过算例分析了消费者价格敏感性变化和低碳产品生产成本上升对最优决策和供应链利润的影响。     

展厅现象下电子零售商与传统零售商的价格竞争

针对双渠道中存在消费者先通过实体店体验产品,而转移电子渠道购买的展厅现象,运用消费者效用理论,建立不同购买方式下电子零售商和传统零售商的定价决策模型,通过对不同情形下最优决策的比较分析,进一步研究展厅现象如何影响电子零售商和传统零售商的定价和利润。研究表明:三种购买方式同时存在时,展厅现象将加剧传统零售商与电子零售商的价格竞争,导致双方利润受损,但当电子渠道接受度较高或是较低且实体店体验对电子渠道接受度的影响较大时,电子零售商可以利用展厅现象提高其销售价格并获利。     

Coordinating pricing and production decisions in the presence of price competition

In this paper we study the effects of coordinating pricing and production decisions on the improvement of a firm’s position in a price-competitive environment. Assuming duopolistic market conditions, we use game-theoretic concepts and models to analyze two scenarios. A firm’s marketing and production departments may vertically coordinate their pricing and production quantity decisions and the two firms may horizontally compete for price-sensitive random demand. The two scenarios include (i) no coordination and (ii) coordination in both firms. We show that by coordinating their pricing and production decisions, competing firms can increase their profitability—especially when conditions are unfavourable (i.e., with smaller market sizes, higher unit costs and lower unit revenues). While it may be intuitive to expect that coordination will outperform non-coordination, our models provide a means for formalizing and quantifying the differences between the two policies.     

绿色产品定价与市场入侵研究:基于市场权力结构的视角

为研究绿色产品定价与市场入侵问题,针对由两个制造商和一个零售商组成的系统,构建了制造商主导、零售商主导以及供需双方均势等三种权力结构模型,分析了权力结构、消费者绿色偏好等因素对绿色产品定价和市场入侵的影响。研究发现:绿色产品入侵市场存在可行条件,并且绿色产品市场入侵会导致普通产品制造商的利润损失;市场入侵对零售商有利,说明零售商会有动机引入绿色产品;绿色产品入侵市场和市场权力结构均会影响各个企业最优定价策略,其中拥有主导权的企业会选择高价策略;权力结构会影响供需双方的利润分配,以及导致系统利润的损失。     

基于在线评论的多个竞争制造商和零售商的产品定价策略

在线评论作为一种产品信息传播载体,越来越受到网上电商及消费者的重视,并在很大程度上影响消费者的购买决策。本文在多个竞争性制造商为在线零售商提供可替代性产品并通过零售商销售给网络消费者的电子商务环境下,研究在线评论信息如何影响网络消费者购买决策及在线零售商和制造商的定价策略。以neo-Hoteling模型为基础,构建了依赖零售渠道在线评论的消费者选择模型,并通过模型求解定量分析了二级供应链结构分散系统下在线评论对多个竞争性制造商及零售商最优决策的影响。得到当制造商基于评论制定最优定价策略时,在线评论对市场竞争强度没有影响,但决定潜在市场大小;各产品的均衡批发价及销售价按一定的比例随评论揭示的该产品与其他产品质量均值之差(正或负)增加或减少,评论信息通常会使制造商因好评而获利,由于评论增加了不同产品需求的不对称性,零售商因而具有更大的调价空间,往往通过提高(降低)占据有利(不利)评论的产品价格获得更高的利润。     

Pricing policies for complementary products in a dual-channel supply chain

This paper investigates the pricing problem of complementary products in a supply chain with two manufacturers and one retailer, one of the two manufacturers uses dual channels including an online channel and a traditional retail channel to sell its product. We formulate four pricing game models through considering different market power structures of channel members, and derive the corresponding optimal pricing strategies. Based on the theoretical and numerical analysis, we study the effects of consumer channel loyalty, the level of complementarity, and the market power structures on the pricing strategies and the maximal profits of two complementary products. Some interesting and valuable managerial insights are obtained.     

The shelf space and pricing strategies for a retailer-dominated supply chain with consignment based revenue sharing contracts

Consider a two-echelon supply chain consisting of two manufacturers and a dominant retailer, such as big supermarkets like Walmart. Under a consignment contract with revenue sharing, the two manufacturers sell through the retailer two substitutable products whose demands are dependent on their shelf space and sales prices. The two manufacturers may compete horizontally for shelf space and pricing by three scenarios: Nash game, Stackelberg game, and collusion, and play vertically the retailer-Stackelberg game with the retailer. For each of these horizontal scenarios, we present all participators’ equilibrium strategies and their corresponding profits, based on which the impacts of manufacturers’ cost difference and moving sequence are investigated. Additionally, we discuss whether a horizontal collusion among manufacturers occurs when they choose their scenarios and whether centralization is always beneficial for the entire chain under the considered consignment contract. The study reveals the following results: (i) When the manufacturers compete horizontally, the high-cost manufacturer always sets a high-price and less shelf space strategy, while the low-cost manufacturer always adopts a low-price and more shelf space strategy, which is not affected by their moving sequence. If they collude horizontally, it is just reverse. (ii) When the two manufacturers compete horizontally, all participators’ equilibrium strategies and their corresponding profits are significantly influenced by manufacturers’ moving sequence. (iii) A horizontal collusion between the manufacturers can occur only when their cost difference is relatively small; this finding supplements existing literature. (iv) When the cost difference between manufacturers is relatively big, then centralization may be detrimental to the entire chain, which can explain why several supply chains adopt vertical competition strategies in practice. In addition, we find that these results still hold for the limited shelf space scenario and shelf-space limitation enhances the horizontal and vertical competition intensity by increasing shelf space fee.     

Periodicity of pricing and marketing efforts in a distribution channel

Most research about cooperative (coop) advertising programs in channels relies on the assumption that manufacturers and retailers decide of pricing and marketing efforts simultaneously. This paper evaluates this central assumption and investigates the optimal periodicity (sequence of move) of pricing and marketing efforts (ME) decisions for a distribution channel. We develop a game theoretic model that accounts for pricing at each level of the channel, for the manufacturer’s ME mix strategies (a direct ME to consumers and coop advertising program offered to the retailer) and the retailer’s ME as well. We obtain solutions for a bilateral channel under different vertical interaction scenarios; when the channel is led by the manufacturer, the retailer or when channel members decide simultaneously of each of their marketing mix decisions (vertical Nash). We compare the effect of pricing and ME decision periodicity on outputs for each channel member. The main findings suggest that simultaneous decision-making of pricing and ME is optimal only for high enough levels of the manufacturer’s ME effects. For very highly effective marketing efforts, sequential play of pricing and ME allows channel members to implement equilibrium strategies and achieve maximum profits that would not be achieved with simultaneous decision-making. This highlights the importance of relaxing the simultaneous play assumption of pricing and ME in a distribution channel.     

不同博弈框架下多竞争零售商的双渠道供应链定价决策研究

在Bertrand竞争、Stackelberg竞争及集中决策下,研究由单制造商与多竞争零售商组成的双渠道供应链的定价决策问题。运用两阶段优化技术、博弈论及矩阵论,讨论了多竞争零售商与单制造商在价格方面相互竞争的问题,给出不同市场竞争模式及集中决策下供应链成员的博弈均衡解。对比不同博弈框架及集中决策下供应链成员的定价决策,通过数值实验分析了价格敏感度及零售商个数对最优定价决策和最大利润影响,给出一些管理学理论与见解,为双渠道供应链中各成员的管理者制定最优决策提供理论支持。     

双渠道供应链中的价格决策与服务决策研究

在集中式和分散式决策条件下,应用两阶段优化技术和Stackelberg博弈的理论与方法,对一个制造商与一个零售商组成的双渠道供应链,重点考虑了制造商在网络渠道的服务决策,建立了利润最大化模型,得到了最优的价格策略和服务策略,研究表明,网络渠道的服务水平对制造商和零售商的价格决策有着重要影响,而且消费者对网络直销渠道的偏好对制造商和零售商价格决策和服务决策会产生很大影响．     

A dynamic model for advertising and pricing competition between national and store brands

We study the relationship between the pricing and advertising decisions in a channel where a national brand is competing with a private label. We consider a differential game that incorporates the carryover effects of brand advertising over time for both the manufacturer and the retailer and we account for the complementary and competitive roles of advertising. Analysis of the obtained equilibrium Markov strategies shows that the relationship between advertising and pricing decisions in the channel depends mainly on the nature of the advertising effects. In particular, the manufacturer reacts to higher competitive retailer’s advertising levels by offering price concessions and limiting his advertising expenditures. The retailer’s optimal reaction to competitive advertising effects in the channel depends on two factors: (1) the price competition level between the store and the national brands and (2) the strength of the competitive advertising effects. For example, in case of intense price competition between the two brands combined with a strong manufacturer’s competitive advertising effect, the retailer should lower both the store and the national brands’ prices as a reaction to higher manufacturer’s advertising levels. For the retailer, the main advantage from boosting his competitive advertising investments seems to be driven by increased revenues from the private label. The retailer should however limit his investments in advertising if the latter generates considerable competitive effects on the national brand’s sales.     

考虑权力结构的产品服务供应链服务渠道选择及协调研究

在制造业服务化转型过程中,传统的产品供应链转变为了产品服务供应链,为顾客提供产品和服务,服务可以由制造商或零售商提供,权力结构会对服务渠道的选择产生影响。本文通过建立博弈模型,研究了制造商为核心、零售商为核心以及制造商与零售商权力均等三种权力结构下最优服务渠道的选择问题,并应用两部定价契约对最优服务渠道的结果进行协调。研究发现,当制造商为核心时,最优的服务渠道为零售商提供服务,当零售商为核心时,最优的服务渠道为制造商提供服务,当制造商与零售商权力均等时,不存在最优的服务渠道。两部定价契约可以实现最优服务渠道的协调,最后通过数值仿真对结论进行了验证。     

供应中断风险下采购与定价决策分析

供应中断是供应链上的企业可能面临的问题,运用合理的采购策略可以帮助企业有效缓解供应中断风险。本文研究了供应中断下供应商和制造商之间的纵向竞争和两个制造商之间的横向竞争问题。供应商制定批发价,两个制造商采用不同的采购策略进行产量博弈,其中一个制造商采用紧急双源订货策略,另一个采用可靠单源订货策略。论文采用了多阶段博弈模型,分析了制造商之间的合谋与竞争两种行为,求出了供应商和制造商的最优决策,比较了这两种行为对供应商和制造商的影响。通过数值分析,讨论了成本参数和可靠性参数对于最优订货量的影响以及对于采用不同订货策略的制造商期望利润的影响。     

The impact of power structure on the retail service supply chain with an O2O mixed channel

While the Internet has provided a new means for retailers to reach consumers, it has fundamentally changed the dynamic of competition in the retail service supply chain. The mix of offline and online channels adds a new dimension of competition, and one central issue of this competition is the pricing strategy between the two channels. How to set prices for both online and offline channels? What is the impact of the supply chain power structure on pricing decisions and the performance? This research aims to address these questions by focusing on a retail service supply chain with an online-to-offline (O2O) mixed dual-channel. From the Supplier-Stackelberg, Retailer-Stackelberg, and Nash game theoretical perspectives, we obtain the optimal prices and maximum profits for both the retailer and supplier under different power structures. The analysis result provides important managerial implications, which will be beneficial to retailers to develop proper pricing strategies.