The effects of common ownership on price and quality decisions in competing supply chains

Chaofan Li, Xiaofang Chen and Wenlei Xia

Managerial and Decision Economics, 2024, vol. 45, issue 6, 4125-4137

Abstract: This paper examines the implications of common ownership on pricing and quality decisions in supply chains. Our results indicate that the presence of common ownership enhances the quality investment but increases the wholesale price. However, the presence of common ownership induces the retailers to charge lower sales price. Because of higher wholesale price and lower sales price, the manufacturer always benefits from the common ownership but the common ownership always hurts the retailers. The presence of common ownership always benefits consumer surplus and social welfare. The benefits of common ownership are more significant as the common ownership level becomes strong.

Date: 2024
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1002/mde.4253

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:45:y:2024:i:6:p:4125-4137

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 ().