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Pricing Policies in a Retailer Stackelberg O2O Green Supply Chain

Author

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  • Gan Wan

    (School of Management and Economics, University of Electronic Science and Technology of China, Cheng Du 611731, China)

  • Gang Kou

    (School of Business Administration, Southwestern University of Finance and Economics, Cheng Du 611130, China)

  • Tie Li

    (School of Management and Economics, University of Electronic Science and Technology of China, Cheng Du 611731, China)

  • Feng Xiao

    (School of Business Administration, Southwestern University of Finance and Economics, Cheng Du 611130, China)

  • Yang Chen

    (School of Business Administration, Southwestern University of Finance and Economics, Cheng Du 611130, China)

Abstract

Due to the popularization of the concept of “new retailing”, we study a new commercial model named O2O (online-to-offline), which is a good combination model of a direct channel and a traditional retail channel. We analyze an O2O supply chain in which manufacturers are responsible for making green products and selling them through both online and offline channels. The retailer is responsible for all online and offline channels’ orders, and the manufacturer gives the retailer a fixed fee. We construct a mathematical function model and analyze the greenness and pricing strategies of centralized and decentralized settings through the retailer Stackelberg game model. Due to the effects of the double marginalization of supply chain members, we adopt a simple contract to coordinate the green supply chain. The paper’s contributions are that we obtain pricing and greening strategies by taking the cooperation of offline channels and online channels into consideration under the O2O green supply chain environment.

Suggested Citation

  • Gan Wan & Gang Kou & Tie Li & Feng Xiao & Yang Chen, 2020. "Pricing Policies in a Retailer Stackelberg O2O Green Supply Chain," Sustainability, MDPI, vol. 12(8), pages 1-16, April.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:8:p:3236-:d:346400
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    References listed on IDEAS

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    Cited by:

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    2. Huilin Yao & Rizhao Gong & Zhihui Yuan, 2022. "Multi-Oligopoly Sequential Pricing Mechanisms and Their Game Analysis in Raw Material Supply Chains," Sustainability, MDPI, vol. 14(23), pages 1-21, December.

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