Impacts of Power Structure on Supply Chain with a Store Brand

Weimin Ma (), Rong Cheng and Hua Ke ()
Additional contact information
Weimin Ma: School of Economics and Management, Tongji University, Room 1416, Tongji Building A, Siping Road 1500, Shanghai 200092, P. R. China
Rong Cheng: School of Economics and Management, Tongji University, Room 1416, Tongji Building A, Siping Road 1500, Shanghai 200092, P. R. China
Hua Ke: School of Economics and Management, Tongji University, Room 1416, Tongji Building A, Siping Road 1500, Shanghai 200092, P. R. China

Asia-Pacific Journal of Operational Research (APJOR), 2018, vol. 35, issue 04, 1-25

Abstract: In a framework where both power structure and consumer heterogeneity (brand loyalty and different willingness-to-pay for perceived quality) count, we study six noncooperative games (two Stackerberg and one Nash games with and without a store brand) between a national-brand manufacturer and a store-brand retailer. Our results contribute to the theoretical literature on store brand in four aspects: (a) revealing that the mechanism whereby store brands alleviate double-marginalization problem varies with supply-chain power structures; (b) finding that it is the power manufacturer with a low-loyalty national brand that suffers most from the store brand entry; (c) finding that a category follower retailer is more inclined to introduce its store brand than a power one, and should optimally position its store brand close to the low-loyalty national brand supplied by a power manufacturer; (d) showing that the store brand may lead the manufacturer and the retailer to be trapped in the prisoners’ dilemma.

Keywords: Store brand; private label; power structure; supply chain; pricing competition; game theory (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S0217595918500203
Access to full text is restricted to subscribers

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:wsi:apjorx:v:35:y:2018:i:04:n:s0217595918500203

Ordering information: This journal article can be ordered from

DOI: 10.1142/S0217595918500203

Access Statistics for this article

Asia-Pacific Journal of Operational Research (APJOR) is currently edited by Gongyun Zhao

More articles in Asia-Pacific Journal of Operational Research (APJOR) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().