Dynamic pricing and dual‐channel choice in the presence of strategic consumers

Dongdong Yu, Miyu Wan and Chunlin Luo

Managerial and Decision Economics, 2022, vol. 43, issue 6, 2392-2408

Abstract: This paper develops a dynamic pricing model to examine how strategic consumers affect the strategic interaction among firms under three dual‐channel formats, that is, direct selling dual‐channel, reselling dual‐channel, and agency selling dual‐channel. The results show that the retailer's selling prices display nonmonotonic relations to the acceptance of electronic channel. When strategic consumers have high patience, all firms prefer to decrease prices in both periods. The interaction of the acceptance of electronic channel and discount factor mediate the optimal mode choice for the firms. In most cases, the reselling dual‐channel and agency selling dual‐channel format are preferable for the retailer and the e‐retailer, respectively.

Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://doi.org/10.1002/mde.3533

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:mgtdec:v:43:y:2022:i:6:p:2392-2408

Access Statistics for this article

Managerial and Decision Economics is currently edited by Antony Dnes

More articles in Managerial and Decision Economics from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().