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Supply chain contracting for vertically differentiated products

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  • Altug, Mehmet Sekip

Abstract

We study a supply chain where the supplier sells a family of vertically differentiated products with varying quality levels through a network of distributors to end consumers who have heterogeneous valuations for quality. With traditional wholesale pricing, it has been shown that the supplier does not share the same incentives as the distributors to sell higher quality products and as a result their economics are not well aligned.

Suggested Citation

  • Altug, Mehmet Sekip, 2016. "Supply chain contracting for vertically differentiated products," International Journal of Production Economics, Elsevier, vol. 171(P1), pages 34-45.
    • Handle: RePEc:eee:proeco:v:171:y:2016:i:p1:p:34-45
    DOI: 10.1016/j.ijpe.2015.10.014
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    References listed on IDEAS

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    Cited by:

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    2. Kwon, Yong Woo & Sheu, Jiuh-Biing & Yoo, Seung Ho, 2022. "Quadratic quantity discount contract under price-dependent demand and consumer returns," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 164(C).
    3. Xie, JiaPing & Liang, Ling & Liu, LuHao & Ieromonachou, Petros, 2017. "Coordination contracts of dual-channel with cooperation advertising in closed-loop supply chains," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 528-538.
    4. Sainathan, Arvind & Groenevelt, Harry, 2019. "Vendor managed inventory contracts – coordinating the supply chain while looking from the vendor’s perspective," European Journal of Operational Research, Elsevier, vol. 272(1), pages 249-260.
    5. Li, Zhiwen & Xu, Xianhao & Bai, Qingguo & Guan, Xu & Zeng, Kuan, 2021. "The interplay between blockchain adoption and channel selection in combating counterfeits," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 155(C).
    6. Yenipazarli, Arda, 2021. "Downstream entry revisited: Economic effects of entry in vertically-related markets," Omega, Elsevier, vol. 103(C).
    7. Yuyan Wang & Zhaoqing Yu & Liang Shen & Yan Ge & Jing Li, 2018. "Different Dominant Models and Fairness Concern of E-Supply Chain," Complexity, Hindawi, vol. 2018, pages 1-13, December.

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