Decisions on Dual-Channel Supply Chains under Market Fluctuations and Dual-Risk Aversion

Abstract

Considering market fluctuations and risk aversion, this paper analyzes the decisions of a dual-channel supply chain consisting of one manufacturer and one retailer and compares the differences in the centralized structure, manufacturer-dominated structure, retailer-dominated structure, and Nash equilibrium structure. This paper also analyzes the impacts of market fluctuations and risk aversion on supply chain profits. The results show that the direct selling price is not influenced by market fluctuations and risk aversion under the retailer’s risk aversion, and the manufacturer-dominated structure and the retail price, direct selling price, and wholesale price in other power structures are negatively correlated with market fluctuations and risk aversion, but the order quantity in the four power structures is positively correlated with market fluctuations and risk aversion, and the profits of supply chain are impacted differently by the market fluctuations and risk aversion.