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Pricing decisions for complementary products with firms’ different market powers

Author

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  • Wei, Jie
  • Zhao, Jing
  • Li, Yongjian

Abstract

This article reports the results of a study that explores the pricing problems with regard to two complementary products in a supply chain with two manufacturers and one common retailer. The authors establish five pricing models under decentralized decision cases, including the MS-Bertrand, MS-Stackelberg, RS-Bertrand, RS-Stackelberg, and NG models, with consideration of different market power structures among channel members. By applying a game-theoretical approach, corresponding analytic solutions are obtained. Then, by comparing the maximum profits and optimal pricing decisions obtained in different decision cases, interesting and valuable managerial insights are established.

Suggested Citation

  • Wei, Jie & Zhao, Jing & Li, Yongjian, 2013. "Pricing decisions for complementary products with firms’ different market powers," European Journal of Operational Research, Elsevier, vol. 224(3), pages 507-519.
  • Handle: RePEc:eee:ejores:v:224:y:2013:i:3:p:507-519
    DOI: 10.1016/j.ejor.2012.09.011
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    References listed on IDEAS

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    Cited by:

    1. Hamed Jafari & Seyed Reza Hejazi & Morteza Rasti-Barzoki, 2016. "Pricing Decisions in Dual-Channel Supply Chain Including Monopolistic Manufacturer and Duopolistic Retailers: A Game-Theoretic Approach," Journal of Industry, Competition and Trade, Springer, vol. 16(3), pages 323-343, September.
    2. repec:eee:ejores:v:267:y:2018:i:2:p:540-554 is not listed on IDEAS
    3. Jadidi, Omid & Taghipour, Sharareh & Zolfaghari, Saeed, 2016. "A two-price policy for a newsvendor product supply chain with time and price sensitive demand," European Journal of Operational Research, Elsevier, vol. 253(1), pages 132-143.
    4. repec:wsi:apjorx:v:34:y:2017:i:02:n:s0217595917400188 is not listed on IDEAS

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