How to price in equity based alliance chains

It is very important for participants to understand how to price in different governance structures. We develop two principal agent models for the equity based alliance supply chains, including the supplier takes the reseller´s equity and the reseller takes the supplier´s equity. From these models, we find out the end price of the supply chain is decided by the tightness of the participants´ cooperation, and the wholesale price charges from the reseller is dependent the power contest between the supplier and the reseller.