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Comparison of Dual-Channel Supply Chain Structures: E-Commerce Platform as Different Roles

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  • Cong Wang
  • De-li Yang
  • Zhao Wang

Abstract

E-commerce platforms can act as an e-tailer or a third-party intermediary that charge a commission and allow manufacturers to sell products on their platform directly. These two forms of dual-channel supply chain structures have different impacts on decisions and profits of manufacturers and traditional retailers. This paper establishes different Stackelberg game models for both dual-channel supply chain structures and achieves the equilibrium results. The results state that both structures can increase the consumer surplus and social welfare. More importantly, when the platform acts as an e-tailer, the manufacturer and the traditional retailer can form a “win-win” situation. Nevertheless, when the platform acts as a third-party intermediary allowing manufacturers to sell products on the platform directly, it is bound to harm the interests of the traditional retailer.

Suggested Citation

  • Cong Wang & De-li Yang & Zhao Wang, 2016. "Comparison of Dual-Channel Supply Chain Structures: E-Commerce Platform as Different Roles," Mathematical Problems in Engineering, Hindawi, vol. 2016, pages 1-10, September.
    • Handle: RePEc:hin:jnlmpe:3831624
    DOI: 10.1155/2016/3831624
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    Cited by:

    1. Xiaodong Zhu & Zhe Wang & Yue Wang & Bangyi Li, 2017. "Incentive Policy Options for Product Remanufacturing: Subsidizing Donations or Resales?," IJERPH, MDPI, vol. 14(12), pages 1-16, December.

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