Game Analysis between Supplier and Retailers in B2B Electronic Marketplace

The study of B2B electronic marketplaces research mainly focused on the electronic market operation and coordination or only from the aspect of retailers, few studied the optimal strategy of suppliers and retailers simultaneously in B2B electronic marketplaces. Under the hypothesis that retailers and suppliers belong to risk aversion type, this paper discussed the optimal strategies of suppliers and retailers in supply chain by using game model, then solved the optimal wholesale price, the optimal retail price and the optimal order quantity, after that analyzed the influence of price fluctuations in B2B electronic marketplaces on the optimal strategies and the expected utility of suppliers and retailers by numerical example. The conclusion shows that retailers can benefit from the price fluctuation increase in B2B electronic marketplaces.