Pricing and service decisions of complementary products in a dual-channel supply chain

This paper investigates the pricing and service decisions of complementary products in a dual-channel supply chain which consists of two manufacturers and one common retailer. One of two manufacturers distributes products through both the direct online channel and the traditional retail channel. Considering the efficacy of different supply chain structures and two types of channel pricing forms, four game models are established. By using the backwards induction and game theory, the corresponding analytical equilibrium solutions are obtained. Finally, numerical examples are presented to compare the effectiveness of optimal results, which gained from the model above and perform a sensitivity analysis of some key parameters, by which obtain some valuable managerial insights. (C) 2016 Elsevier Ltd. All rights reserved.