Journal of Korean Society of Industrial and Systems Engineering (산업경영시스템학회지)

Society of Korea Industrial and System Engineering (한국산업경영시스템학회)
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Strategic Analysis of the Multilateral Bargaining among the Manufacturer, the Online and the Offline Distribution Channels

제조업체, 온라인 유통채널 및 오프라인 유통채널 간의 다자간 협상전략에 관한 연구

  • Cho, Hyung-Rae (Dept. of Industrial Systems Engineering/ERI, Gyeongsang National University) ;
  • Rhee, Minho (Dept. of Industrial Systems Engineering/ERI, Gyeongsang National University) ;
  • Lim, Sang-Gyu (Dept. of Industrial Systems Engineering/ERI, Gyeongsang National University)
  • 조형래 (경상대학교 공과대학 산업시스템공학부/공학연구원) ;
  • 이민호 (경상대학교 공과대학 산업시스템공학부/공학연구원) ;
  • 임상규 (경상대학교 공과대학 산업시스템공학부/공학연구원)
  • Received : 2014.08.29
  • Accepted : 2014.12.02
  • Published : 2014.12.31
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Abstract

In this paper, we study the bargaining strategy of a manufacturer who sells a product through the online and offline distribution channels. To do this, we derive and analyze the equilibrium solutions for both simultaneous and sequential bargaining games. The result shows that the optimal bargaining strategy heavily depends on the size of the online distribution channel's loyal customers and the difference between the retail prices of the online and the offline distribution channels. It is also shown that, in some cases, the online distribution channel has incentive to downsize its loyal customers and its retail price for a better bargaining outcome.

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References

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