Group buying decisions of competing retailers with emergency procurement

Rong Zhang and Bin Liu ()
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Rong Zhang: Shanghai Maritime University
Bin Liu: Shanghai Maritime University

Annals of Operations Research, 2017, vol. 257, issue 1, No 13, 317-333

Abstract: Abstract Group buying has been in vogue for many years, particularly for short-life-cycle products. This paper investigates the effects of pricing and ordering in group buying, and considers the joint decision on pricing and ordering of short-life-cycle products in competing markets if retailers could provide the emergency procurement to meet all stochastic demands. It is shown that retailers always prefer to launch group buying in a single channel, which is also observed in a dual channel for competing retailers due to emergency procurement. These findings differ from those presented in the related literatures.

Keywords: Supply chain; Emergency procurement; Joint decision; Group buying (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (5)

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DOI: 10.1007/s10479-016-2108-5

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