I provide a general analysis of vertical relations that are intermediated either with wholesale prices or with revenue-sharing contracts. Although revenuesharing does not eliminate double markups, it nonetheless tends to lower retail prices. Revenue-sharing is extremely attractive to the firm that is able to set the revenue shares, but often makes the other firm worse off. These results hold ev...

We investigate the effect of sequential commitment in the decentralized newsvendor model with price-dependent demand. Sequential commitment allows the self-profit maximizing parties to commit to contract parameters (e.g., wholesale price, retail price, buyback price and order quantity) sequentially and alternately, and we investigate its effect on the equilibrium profits of the channel and its ...

Westudy a dual-channel supply chain under decentralized setting in which manufacturer sells to retailer and to customers directly usingan online channel. A customer chooses the purchase-channel based on price and service quality. Also, to buy product from the retail store, the customer incurs a transportation cost influenced by the fluctuating gasoline cost. Both companies are under the revenue...

this paper proposes a stochastic framework for demand response (dr) aggregator to procure dr from customers and sell it to purchasers in the wholesale electricity market. the aggregator assigns fixed dr contracts with customers based on three different load reduction strategies. in the presented problem the uncertainty of market price is considered and the risk of aggregator participation is ma...

We investigate the operational decisions and resulting profits for a supply chain facing price-dependent demand under a policy where there is an ex-ante commitment made on the retail price markup. We obtain closed-form solutions for this policy under the assumption of a multiplicative demand function and we analytically compare its performance with that of a traditional price-only policy. We co...

The paper establishes a fairness preference framework based on game theory of Nash bargaining, and builds a utility system about fairness preference. On the basis, we expeands the newboy model to behavior research. The analysis shows that because of the retailer and suppliers’ fairness preference, their optimal order quantities tend to became conservative, and the result shows that the greater ...