Online cooperation mechanism: game analysis between a restaurant and a third-party website

Jingmei Xu (), Li Hu (), Xiaolong Guo () and Xia Yan ()
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Jingmei Xu: University of Science and Technology of China
Li Hu: University of Science and Technology of China
Xiaolong Guo: University of Science and Technology of China
Xia Yan: Southwest University of Science and Technology

Journal of Revenue and Pricing Management, 2020, vol. 19, issue 1, No 7, 73 pages

Abstract: Abstract Increasing numbers of restaurants pay a commission to seek a business relationship with a third-party website as an alternative distribution channel for traditional offline selling. Whether to build the cooperation and how to set the online marketing strategy are the major concern of these restaurants. In this paper, a Stackelberg game is established to study online pricing strategies of a restaurant, as well as the optimal service effort level of a third-party website. Two optimal cooperative strategies in different scenarios are obtained, which are comprehensively influenced by the restaurant’s retail price and the website’s user base.

Keywords: E-commerce; Pricing; Restaurant marketing; Third-party website; Game theory (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (3)

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DOI: 10.1057/s41272-018-00181-3

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