Revenue-sharing versus wholesale price mechanisms under different channel power structures

Kewen Pan, K. K. Lai, Stephen C.H. Leung, Di Xiao

    Research output: Journal Publications and ReviewsRGC 21 - Publication in refereed journalpeer-review

    210 Citations (Scopus)

    Abstract

    We consider a supply chain channel with two manufacturers and one retailer. Each manufacturer can choose either a wholesale price contract or a revenue-sharing contract with the retailer. We discuss and compare the results of two different types of contracts under different channel power structures, to check whether it is beneficial for manufacturers to use revenue-sharing contracts under different scenarios. Then we consider a supply chain channel with one manufacturer and two retailers. Each retailer can choose either a wholesale price contract or a revenue-sharing contract with the manufacturer. We analyze the likely outcomes under different scenarios to discover whether it is beneficial to use revenue-sharing contracts. Crown Copyright © 2009.
    Original languageEnglish
    Pages (from-to)532-538
    JournalEuropean Journal of Operational Research
    Volume203
    Issue number2
    DOIs
    Publication statusPublished - 1 Jun 2010

    Research Keywords

    • Game theory
    • Power structure
    • Pricing
    • Supply chain management

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