Industrial Engineering Journal ›› 2022, Vol. 25 ›› Issue (6): 1-9,100.doi: 10.3969/j.issn.1007-7375.2022.06.001

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A Research on Pricing Decisions of Hybrid Platform Supply Chain by Considering Power Structures and Spillover Effects

WEI Jie, MENG Xiangjia, XU Zeling   

  1. School of Economics and Management, Hebei University of Technology, Tianjin 300401, China
  • Received:2021-08-02 Published:2022-12-23

Abstract: In a hybrid platform supply chain with a manufacturer and an e-tailer, in which the manufacturer sells a product not only through the offline channel but also through the e-tailer′s direct selling and distribution channels. Based on the power structures between channel members and the spillover effects of online to offline sales, six decision-making models are established. By solving and analyzing the equilibrium solutions of these models, some managerial insights are derived: the positive spillover effect always prompts supply chain members to reduce the product′s optimal wholesale price and retail price, while the negative spillover effect always prompts supply chain members to increase the product′s optimal wholesale price and retail price, which are independent of the power structures between channel members. Besides, the difference of product′s optimal retail prices under different power structures always decreases with the enhancement of negative spillover effect, and increases with the enhancement of positive spillover effect. For the manufacturer and the e-tailer, those who dominate in different power structures can get more profits, and the total supply chain′s profit achieves the maximum when they have equivalent market power.

Key words: platform supply chain, power structures, spillover effects, pricing decisions

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