Title :
Pricing Decision for Two Differentiated Products
Author :
Wei, Jie ; Zhao, Jing
Author_Institution :
Mil. Traffic Inst., Tianjin
Abstract :
The traditional newsvendor problems is extended to a more realistic structural features: market demand that is sensitive to the selling prices of two differentiated products, direct competition in the marketplace, and multi- echelon interaction. Detailedly, one manufacturer who produces two differentiated products, and sells the two products to two different competitive retailers, and the two retailers then sell the two products to end consumer where consumer demand for each product is stochastic. Using game-theoretical approach, in the manufacturer Stackelberg game case, the decisions on the retail prices and order quantities of two products for the two different retailers and the decisions on the wholesales prices of two products for the manufacturer are explored.
Keywords :
decision theory; game theory; pricing; retailing; stochastic processes; supply chain management; differentiated products; game theory; manufacturer Stackelberg game; market demand; multiechelon interaction; newsvendor problems; pricing decision; retail prices; stochastic consumer demand; supply chain structure; Automation; Game theory; Logistics; Power generation economics; Pricing; Pulp manufacturing; Stochastic processes; Supply chains; Technological innovation; Uncertainty; Game theory; differentiated product; pricing decision;
Conference_Titel :
Automation and Logistics, 2007 IEEE International Conference on
Conference_Location :
Jinan
Print_ISBN :
978-1-4244-1531-1
DOI :
10.1109/ICAL.2007.4338937
