Quantity-based or share-based? Discount schemes for the manufacturer when facing two competing retailers

Purpose The authors investigate the manufacturer's choice of discount schemes in a supply chain with competing retailers. Design/methodology/approach Using game-theoretic model, build two frameworks and compare analyze effects different on performance members. Findings find that retail price (market demand) quantity scheme is always higher (lower) than market share scheme. also retailers' preference for antithetical to most cases. However, under certain conditions, there will be win-win situation where Pareto-optimization occurs between manufacturer retailers when they choose same Research limitations/implications On one hand, assume are symmetrical size operation efficiency. It would interesting study effect have sizes or operating other common practice, exist structures. Future research can examine problem choices Practical implications This paper help manufacturers best schemes. Social suggests high scale not beneficial (detrimental) (the manufacture). Originality/value share) consisting retailers, focus competition By comparing schemes, which better facing