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Price Stickiness in a Dual‐Channel Supply Chain

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  • Ismail Saglam

Abstract

In this paper, we investigate price stickiness in a dual‐channel supply chain where a manufacturer sells its product directly through an online retailer and indirectly through an offline retailer. We construct a noncooperative game where the manufacturer and the offline retailer decide whether or not to costlessly adjust their prices after a demand shock. If the demand shock is positive, then no price can be sticky at the unique Nash equilibrium. If the demand shock is negative, then we additionally observe equilibria where some or all prices can be sticky. We also show that no equilibrium is always Pareto optimal.

Suggested Citation

  • Ismail Saglam, 2025. "Price Stickiness in a Dual‐Channel Supply Chain," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 46(5), pages 2766-2782, July.
    • Handle: RePEc:wly:mgtdec:v:46:y:2025:i:5:p:2766-2782
    DOI: 10.1002/mde.4501
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    More about this item

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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