Optimal Policy for Probabilistic Selling with Three-Way Revenue Sharing Contract under the Perspective of Sustainable Supply Chain

Probabilistic selling (PS) is widely used in the travel industry and marketing practices; how to design a win-win contract using PS multiple participants’ supply chain achieve sustainable development has been worthy concerned issue green China. To end this, we consider three-players involving two firms common retailer which sell their transparent products via dual channel, while sells probabilistic goods by direct channel. First, three players’ demand functions are derived both Hotelling model taking account of consumers’ price reference effects. Second, construct for decentralized centralized systems. The optimal policies system determined employing Stackelberg sequential games an analytical approach. Third, propose new three-way revenue sharing deal with channel conflict. Furthermore, determine conditions under dual-channel can be coordinated win–win situation all participants. results indicate that adopts depending upon relative values manufacturers’ production costs contract. More interestingly, not only improve chain’s efficiency, but also coordinate Finally, present numerical analysis verify our sensitivity parameters involved.