Study on dual-channel revenue sharing coordination mechanisms based on the free riding

Author

Ganfu, Wang ; Xing-zheng, AI ; Huaping, Deng

Author_Institution

Sch. of Econ. & Manage., Univ. of Electron. Sci. & Technol. of China, Chengdu, China

fYear

2009

fDate

8-10 June 2009

Firstpage

532

Lastpage

535

Abstract

With the rapid development of e-commerce and the adoption of dual channels, free riding becomes more prevalent than ever before and often results in channel conflict. In this paper, we use a game theory approach to investigate this issue; and we explore how to coordinate supply chain by sharing revenue under free riding. Our results show that both the manufacturer and the retailer benefit from the revenue-sharing strategy because of the incremental profit gains generated by the channel coordination.

Keywords

electronic commerce; game theory; pricing; profitability; retailing; supply chain management; coordinate supply chain; dual-channel product selling; dual-channel revenue sharing coordination mechanism; dual-channel supply chain; e-commerce; free riding; game theory approach; incremental profit gain; price competition; Artificial intelligence; Books; Costs; Internet; Inventory management; Marketing and sales; Pricing; Supply chains; Uncertainty; Virtual manufacturing; channel coordination; dual-channel; free riding; revenue sharing;

fLanguage

English

Publisher

ieee

Conference_Titel

Service Systems and Service Management, 2009. ICSSSM '09. 6th International Conference on

Conference_Location

Xiamen

Print_ISBN

978-1-4244-3661-3

Electronic_ISBN

978-1-4244-3662-0

Type

conf

DOI

10.1109/ICSSSM.2009.5174941

Filename

5174941