Analysis of the Impact of Return Price on Competing Supply Chains

Jian Liu () and Haiyan Wang ()
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Jian Liu: Southeast University
Haiyan Wang: Southeast University

A chapter in LISS 2012, 2013, pp 175-180 from Springer

Abstract: Abstract In this paper, we build the model of two competing supply chains in the presence of customer returns. The competition exists on retail price and return price. We examine the optimal pricing and ordering strategy of two competing supply chains in the Bertrand-Nash equilibrium and Stackelberg equilibrium respectively, and then analyze the impact of return price on supply chains. We conclude that the optimal price, order quantity and profits in the Stackelberg equilibrium are affected more greatly by return price than that in the Bertrand-Nash equilibrium.

Keywords: Competing supply chain; Return policy; Bertrand-Nash equilibrium; Stackelberg equilibrium (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-642-32054-5_26

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DOI: 10.1007/978-3-642-32054-5_26

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