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Optimal Independent Pricing Strategies of Dual-Channel Supply Chain Based on Risk-Aversion Attitudes

Zheng Liu (), Qi Xu () and Kun Yang
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Zheng Liu: School of Management, Shanghai University of Engineering Science, Shanghai, P. R. China
Qi Xu: School of Management, Donghua University, Shanghai, P. R. China
Kun Yang: School of Management, Shanghai University of Engineering Science, Shanghai, P. R. China

Asia-Pacific Journal of Operational Research (APJOR), 2018, vol. 35, issue 02, 1-17

Abstract: Dual-channel supply chain system, channel optimization is influenced by channel attitude toward risk, in which risk is classified as general risk and interruption risk. To consider lead time may bring out supply conflicts, substitution effect of online channel and ratio of promotional cost are introduced and an independent model is developed. Based on that, the impact of interruption risk under risk-aversion attitude on both channels is further studied. Finally, it is proved how the risk attitude influences pricing and profit strategy.

Keywords: Dual-channel; pricing strategy; risk-aversion; interruption (search for similar items in EconPapers)
Date: 2018
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DOI: 10.1142/S0217595918400043

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