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

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

156 Scopus Citations
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Author(s)

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

Related Research Unit(s)

Detail(s)

Original languageEnglish
Pages (from-to)532-538
Journal / PublicationEuropean Journal of Operational Research
Volume203
Issue number2
Publication statusPublished - 1 Jun 2010

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.

Research Area(s)

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

Citation Format(s)

Revenue-sharing versus wholesale price mechanisms under different channel power structures. / Pan, Kewen; Lai, K. K.; Leung, Stephen C.H.; Xiao, Di.

In: European Journal of Operational Research, Vol. 203, No. 2, 01.06.2010, p. 532-538.

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review