Author(s)

Jian Zhou, Ning Ding

Corresponding Author

Ning Ding

ABSTRACT

In the horizontal competition of multi-channel supply chain composed of a dominant dual-channel retailer and an online-retailer, a Stackelberg game model with the dominant dual-channel retailer as leader was established. Then the effects of relative market shares on price decision were studied under centralized and decentralized strategies of dual-channel retailer. Finally, the changing trend of channel prices and profits were discussed with numerical analysis. The results show that the price of the dual-channel retailer is lower but the profit is higher under decentralized strategy, and the online channel is more profitable from the e-commerce market expansion, decentralized strategy is more beneficial to dual-channel retailer. The price of online-retailer is lower under centralized strategy, but the profit is higher.

KEYWORDS

Dominant dual-channel retailer; multi-channel supply chain; horizontal competition; price decision