Pricing Decision for Two Differentiated Products

Author

Wei, Jie ; Zhao, Jing

Author_Institution

Mil. Traffic Inst., Tianjin

fYear

2007

fDate

18-21 Aug. 2007

Firstpage

2181

Lastpage

2186

Abstract

The traditional newsvendor problems is extended to a more realistic structural features: market demand that is sensitive to the selling prices of two differentiated products, direct competition in the marketplace, and multi- echelon interaction. Detailedly, one manufacturer who produces two differentiated products, and sells the two products to two different competitive retailers, and the two retailers then sell the two products to end consumer where consumer demand for each product is stochastic. Using game-theoretical approach, in the manufacturer Stackelberg game case, the decisions on the retail prices and order quantities of two products for the two different retailers and the decisions on the wholesales prices of two products for the manufacturer are explored.

Keywords

decision theory; game theory; pricing; retailing; stochastic processes; supply chain management; differentiated products; game theory; manufacturer Stackelberg game; market demand; multiechelon interaction; newsvendor problems; pricing decision; retail prices; stochastic consumer demand; supply chain structure; Automation; Game theory; Logistics; Power generation economics; Pricing; Pulp manufacturing; Stochastic processes; Supply chains; Technological innovation; Uncertainty; Game theory; differentiated product; pricing decision;

fLanguage

English

Publisher

ieee

Conference_Titel

Automation and Logistics, 2007 IEEE International Conference on

Conference_Location

Jinan

Print_ISBN

978-1-4244-1531-1

Type

conf

DOI

10.1109/ICAL.2007.4338937

Filename

4338937