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Optimal Independent Pricing Strategies of Dual-Channel Supply Chain Based on Risk-Aversion Attitudes

Author

Listed:
  • Zheng Liu

    (School of Management, Shanghai University of Engineering Science, Shanghai, P. R. China)

  • Qi Xu

    (School of Management, Donghua University, Shanghai, P. R. China)

  • Kun Yang

    (School of Management, Shanghai University of Engineering Science, Shanghai, P. R. China)

Abstract

Dual-channel supply chain system, channel optimization is influenced by channel attitude toward risk, in which risk is classified as general risk and interruption risk. To consider lead time may bring out supply conflicts, substitution effect of online channel and ratio of promotional cost are introduced and an independent model is developed. Based on that, the impact of interruption risk under risk-aversion attitude on both channels is further studied. Finally, it is proved how the risk attitude influences pricing and profit strategy.

Suggested Citation

  • Zheng Liu & Qi Xu & Kun Yang, 2018. "Optimal Independent Pricing Strategies of Dual-Channel Supply Chain Based on Risk-Aversion Attitudes," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 35(02), pages 1-17, April.
    • Handle: RePEc:wsi:apjorx:v:35:y:2018:i:02:n:s0217595918400043
    DOI: 10.1142/S0217595918400043
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    References listed on IDEAS

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    Cited by:

    1. Shizhen Bai & Yonggan Wang, 2022. "Green Investment Decision and Coordination in a Retailer-Dominated Supply Chain Considering Risk Aversion," Sustainability, MDPI, vol. 14(20), pages 1-36, October.
    2. Rufeng Wang & Xiongwei Zhou & Bo Li, 2022. "Pricing strategy of dual-channel supply chain with a risk-averse retailer considering consumers’ channel preferences," Annals of Operations Research, Springer, vol. 309(1), pages 305-324, February.

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