Competitive pricing decisions in a two-echelon supply chain with horizontal and vertical competition

Cheng Han Wu, Chieh Wan Chen, Chung Chi Hsieh

Research output: Contribution to journalArticle

90 Citations (Scopus)

Abstract

This study investigates the pricing decisions in a non-cooperative supply chain that consists of two retailers and one common supplier. The retailers order from the common supplier and compete in the same market. We analyze six power structures that characterize exclusively horizontal competition between the retailers and vertical competition between the supplier and the retailers, leading to different sequences of moves among the chain members. We derive the analytical forms of the equilibrium quantities under each power structure and explore the effect of retail substitutability on the equilibrium quantities among all power structures. We further investigate the performances of the game models as compared with the integrated model.

Original languageEnglish
Pages (from-to)265-274
Number of pages10
JournalInternational Journal of Production Economics
Volume135
Issue number1
DOIs
Publication statusPublished - 2012 Jan 1

All Science Journal Classification (ASJC) codes

  • Business, Management and Accounting(all)
  • Economics and Econometrics
  • Management Science and Operations Research
  • Industrial and Manufacturing Engineering

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