Group buying has been in vogue for many years, particularly for short-life-cycle products. This paper investigates the effects of pricing and ordering in group buying, and considers the joint decision on pricing and ordering of short-life-cycle products in competing markets if retailers could provide the emergency procurement to meet all stochastic demands. It is shown that retailers always prefer to launch group buying in a single channel, which is also observed in a dual channel for competing retailers due to emergency procurement. These findings differ from those presented in the related literatures.
Supply chain Emergency procurement Joint decision Group buying
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The authors gratefully acknowledge support from the National Natural Science Foundation of China through Grant U1204701, 71301045 and 71511117, and the Innovation Ability Construction Projects for Shanghai University through Grant 15590501800.
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