Affiliation:
1. Business School Sichuan University Chengdu Sichuan 610065 China
Abstract
AbstractThis paper proposes an analytic model under fresh produce e‐commerce considering value‐added service and order cancelation behavior. We first examine the optimal prices, value‐added service decisions, and profits in the centralized and decentralized channels. Then, the revenue‐cost‐sharing contract is designed to eliminate the double marginal effect in the decentralized channel. The main findings are threefold. First, with the improvement of product quality, the optimal value‐added service may increase and then decrease in both centralized and decentralized channels. Second, compared with the centralized channel, the decentralized channel prefers a lower retail price only when both salvage value coefficient and product quality are high. Besides, the proposed revenue‐cost‐sharing contract performs well in improving the value‐added service and profits in the decentralized channel.
Funder
National Natural Science Foundation of China
Subject
Management of Technology and Innovation,Management Science and Operations Research,Strategy and Management,Business and International Management
Cited by
3 articles.
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