Channel Selection and Pricing Decisions Considering Three Charging Modes of Production Capacity Sharing Platform: A Sustainable Operations Perspective

Daozhi Zhao, Yang Xue, Cejun Cao and Hongshuai Han
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Daozhi Zhao: College of Management and Economics, Tianjin University, Tianjin 300072, China
Yang Xue: College of Management and Economics, Tianjin University, Tianjin 300072, China
Cejun Cao: School of Business Planning, Chongqing Technology and Business University, Chongqing 400067, China
Hongshuai Han: College of Management and Economics, Tianjin University, Tianjin 300072, China

Sustainability, 2019, vol. 11, issue 21, 1-28

Abstract: In the context of sharing economy, a manufacturer can source from two alternative channels: sharing and traditional, when facing production capacity constraints and sustainably conscious consumers. The aim of the paper is to analyze channel selection and pricing strategies of the manufacturer for achieving sustainable operations, to investigate the operations of the platform regarding charging modes, access requirements, and commission rates in different stages of development, and to discuss the interaction among all stakeholders for sustainability in the whole system. The game-theoretic approach is adopted. The results provide references for decisions of the manufacturer and surplus production capacity supplier to join in the sharing, as well as corresponding optimal pricing strategies, which guides platforms to keep a balance between profitability and attracting participants by relatively low access requirements and commission rates. Moreover, developing platforms prefer to charge suppliers and set low access requirements while relatively developed platforms tend to charge bilateral sides or manufacturers and set high access requirements. Charging the manufacturer encourages the bilateral participation of the platform most. In addition, as charging mode changes, the trend of changes in consumer surplus and social welfare is the same as that in the market share of products from the sharing channel.

Keywords: production capacity sharing; channel selection; pricing; charging mode; game theory; sustainable operations perspective (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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