Dynamic Cooperation of the O2O Supply Chain Based on Time Delays and Bidirectional Free-Riding

Advertising and service investment can enhance brand goodwill to increase the sales of branded goods. However, impact advertising services on is not immediate but delayed. At same time, due different characteristics provided by various channels, phenomenon bidirectional free-riding occurs. Therefore, this paper studies dynamic cooperation between in O2O (online offline) supply chain dominated owners explores impacts advertising, delay among channels decisions chain. A differential game model brands retailers constructed incorporating effect phenomenon. The optimal strategies performance problems enterprises under a centralized decision, cost-sharing decision bilateral are compared analyzed. influence showrooming webrooming effects profit each firm investigated example. results show that strategy, strategy members decision. Still, necessarily coefficients. Bilateral contracts achieve Pareto improvement performance. Appropriate setting ratio adjust adverse free-riding. long-term deal with phenomena as follows: contract improve corporate profits. Setting wholesale price, online direct-selling price service-sharing effectively promote retailers’ service, achieving win-win situation. Retailers maintain high pricing levels premium ability physical stores development.