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A study on pricing and delivery strategy for e-retailing systems

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  • Huang, Yeu-Shiang
  • Chen, Si-Hen
  • Ho, Jyh-Wen

Abstract

This study investigates the dynamics between price and lead time for an e-retailing system in which one of its commodities is offered by two duopolistic suppliers. A Stackelberg game is formulated by considering the two suppliers as the leaders and the e-retailer as the follower. The proposed model assists the channel members in getting an equilibrium relationship in a competitive environment. The results suggest that when a supplier chooses a shorter lead time as the competitive strategy, the other supplier should choose a lower price for counteraction, and channel members should understand the characteristics of demand before promoting their commodities.

Suggested Citation

  • Huang, Yeu-Shiang & Chen, Si-Hen & Ho, Jyh-Wen, 2013. "A study on pricing and delivery strategy for e-retailing systems," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 59(C), pages 71-84.
    • Handle: RePEc:eee:transe:v:59:y:2013:i:c:p:71-84
    DOI: 10.1016/j.tre.2013.09.002
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    Cited by:

    1. Shao, Xiao-Feng, 2017. "Free or calculated shipping: Impact of delivery cost on supply chains moving to online retailing," International Journal of Production Economics, Elsevier, vol. 191(C), pages 267-277.

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