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Dual Selection of Competing Channels Based on Internet Channel and Power Structures

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Abstract

In competing channels with a dominant retailer, the article first calculates equilibrium outcomes under three power structures. Then it analyzes the effects of the reservation price difference and internet channel on channel members’ profits. Finally, it investigates dual selection equilibriums of competing channels based on internet channel and power structures. The study shows that with the enhancement of consumer preferences for internet channel, the possibility of opening an internet channel will increase for manufacturer. However, the manufacturer’s profits may not increase when it opens an internet channel.

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Acknowledgment

This work is supported by Science and Technology Support Program of Sichuan Province (2011SZ0228).

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Correspondence to Jun Liu .

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© 2013 Springer-Verlag Berlin Heidelberg

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Liu, J., Tan, Dq. (2013). Dual Selection of Competing Channels Based on Internet Channel and Power Structures. In: Qi, E., Shen, J., Dou, R. (eds) The 19th International Conference on Industrial Engineering and Engineering Management. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-37270-4_16

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