Research on Pricing Strategy of Three-echelon Dual-channel Supply Chain under Market Equilibrium

Abstract

Abstract The healthy and sustainable development of supply chain must be based on the consideration of both enterprise profit and consumer benefit and only the market behavior under perfect competition environment might maximize the social total welfare. The market equilibrium in perfect competition market is the premise of maximizing the sum of consumer and producer surplus. Taking the pricing strategies of supplier, manufacturer and retailer as research objects, market demand and supply functions considering the effect of different channel prices is built, and a three-echelon dual-channel supply chain model is constructed. Then, the optimal pricing strategies of decentralized and integrated three-echelon dual-channel supply chain are developed by applying two-stage stackelberg game theory and overall revenue maximization principle. Furthermore, the conditions of optimal equilibrium prices existing with the restriction of market equilibrium are discussed, and the expressions of the optimal equilibrium prices about different supply chain structures are analyzed. Eventually, we use method of numerical analysis to explain the pricing strategy we analyze.