A Game Theory Analysis of Competitive Strategies of Durable Goods Manufacturer and Dealer under the Electronic Commerce Environment
Peng Jing
Lin Jie
Lin Zheng
Abstract：A two-period dual channel model is considered in which a manufacturer sells a durable product directly through both a manufacturer-owned e-channel and an independent dealer who sells products direct-ly to consumers .By solving the Kuhn-Tucker conditions of the optimization problem of each period , each supply chain player ’ s optimal decisions and profits are obtained .The results show that the product dura-bility and direct selling cost have an important impact on player ’ s optimal strategies in a dual channel sup-ply chain .When the direct selling cost exceeds a certain threshold , it is optimal for the manufacturer to open an e-channel even when there are no products sales through it .Moreover , the dealer may benefit from the manufacturer ’ s encroachment when the direct selling cost is higher .
Keywords：durable goodscompetitive strategygame theorydual channel
Publication Date：2014-01-01
Online Publishing Date：2025-08-15(First online date of this platform, not the publication date of the document)
Pages：6( 89-94 )