This study investigates the dynamics between price and lead time for an e-retailing system in which one of its commodities is offered by two duopolistic suppliers. A Stackelberg game is formulated by considering the two suppliers as the leaders and the e-retailer as the follower. The proposed model assists the channel members in getting an equilibrium relationship in a competitive environment. The results suggest that when a supplier chooses a shorter lead time as the competitive strategy, the other supplier should choose a lower price for counteraction, and channel members should understand the characteristics of demand before promoting their commodities.
|Number of pages||14|
|Journal||Transportation Research Part E: Logistics and Transportation Review|
|Publication status||Published - 2013 Nov|
All Science Journal Classification (ASJC) codes
- Business and International Management
- Civil and Structural Engineering