Complexity Analysis of Pricing in a Multichannel Supply Chain with Spillovers from Online to Offline Sales

Fengxia Mai, Jianxiong Zhang, Rui Yang and Xiaojie Sun

Complexity, 2020, vol. 2020, 1-17

Abstract:

In recent years, many manufacturers have been selling their products to online consumers through e-tailers by adopting reselling mode and agency selling mode simultaneously. The sales from the online channels inevitably incur spillover effect to the traditional offline channels. This paper develops a dynamic pricing game model on the basis of a long-term gradient adjustment mechanism for a multichannel supply chain that consists of a manufacturer and an e-tailer and focuses on examining the impacts of spillover effect, agency fee, and adjustment speed on the stability and complexity of the dynamic game system. The results show that both a greater spillover effect and a higher agency fee can make the dynamic game system more stable, and a higher adjustment speed can destabilize the dynamic game system through period doubling bifurcation. Furthermore, it is interesting to find that the destabilization of the game system benefits the e-tailer and the supply chain while having little influence on the manufacturer, and thus the dynamic adjustment strategy may improve the supply chain efficiency.

Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:hin:complx:3145478

DOI: 10.1155/2020/3145478

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