The research of revenue sharing contract with two substitutable products

In the single-product revenue-sharing (RS) models, a retailer pays a wholesale price for each unit purchased to a supplier, plus a proportion of the revenue the retailer generates. In a two-stage supply chain that a retailer carry two substitutable products which are supplied by two non-competitive suppliers, this paper build a market-like model under the non-cooperative between the retailer and the suppliers, we demonstrate the market-like model can´t coordinate the supply chain. And basing the classical RS model, this paper focus on establish the RS model and we present a idiographic strategy for RS being coordination about the supply chain. Additionally, our RS model also does not coordinate the supply chain with demand that depends on costly retail effort. We develop a revenue and effort cost sharing model and coordinate the supply chain in this setting. Our models also consider the price-sensitive and random demand, random supply and the retailer´s attitude toward stock risk.