Differential game model of cooperative advertising in a supply chain with deteriorating items, competing retailers and reference price effects

Author(s):  
Chunhai Yu ◽  
Yuxiao Ren ◽  
Thomas W. Archibald
2021 ◽  
Vol 16 (5) ◽  
pp. 1492-1516
Author(s):  
Wenhua Hou ◽  
Yuwen Zeng

(1) Background: A binding recommended retail price has been used in several markets in a variety of forms, and the book market is a typical example. Publishers sell books to online retailers at a unit wholesale discount computed on the cover price. Retailers are then allowed to set the retail price. Therefore, if consumers regard the cover prices as reference points, then they may be more likely to purchase books if retail prices are lower than the cover prices. (2) Methods: We develop a Stackelberg game model for a book supply chain to investigates how reference price effects affect retailers and publisher’s pricing strategies. (3) Results: The results show that retailers will sell printed books at a discount only when the publisher’s wholesale discount rate is not high. Further, as the intensity of the reference price effects increases, (a) the lower boundary of the wholesale discount rate rises, (b) publishers’ profits increase and (c) retailers’ profits increase relative to the level of consumers’ e-books acceptance. (4) Conclusions: This result is related to the fact that the online retailer, such as Amazon and JD.com, like to invoke reference price effects in consumers’ minds by highlighting the printed book’s discount rate.


Omega ◽  
2013 ◽  
Vol 41 (2) ◽  
pp. 345-353 ◽  
Author(s):  
Juan Zhang ◽  
Qinglong Gou ◽  
Liang Liang ◽  
Zhimin Huang

2021 ◽  
Vol 2021 ◽  
pp. 1-15
Author(s):  
Guiju Zhu ◽  
Jialing Li ◽  
Yi Zhang ◽  
Haiyun Liu

Taking government environmental regulation and consumer’s green preference into a unified analytical framework, this study constructed a differential game model. With the joint effect of supplier and manufacturer green innovation efforts on the dynamic change of the product’s green level, it compared and analyzed the long-term dynamic equilibrium strategies of green innovation cooperation in a supply chain under decentralized and centralized decision-making situations. Accordingly, a scientific and reasonable profit-distribution contract was then proposed. On this basis, it further carried out a numerical simulation analysis on the dual-driving effects of the government and market. The results showed that the scientific and reasonable profit-distribution contract under the centralized decision-making situation, which was designed by using the Rubinstein bargaining game model, could effectively ensure that the supply chain members’ sharing profits would realize "Dual Pareto Improvements." With the increase of the environmental regulation’s intensity, the product’s green level kept rising and tended to be stable. However, the overall equilibrium profit of the supply chain was characterized by "U" fluctuation, which first descended and then ascended. In addition, the product’s green level, the green innovation investment and equilibrium (distributed) profits of supply chain members, and the overall profits of supply chain all increased with the consumers’ green preference.


Heliyon ◽  
2021 ◽  
pp. e07811
Author(s):  
A.K.M. Mohsin ◽  
Sayed Far Abid Hossain ◽  
Hasanuzzaman Tushar ◽  
Mohammed Masum Iqbal ◽  
Alamgir Hossain

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