Analysis on the Impact of Electronic Secondary Market on the Price with the Perishable Goods Supply Chain

The development of business-to-business commerce has result in the establishment of many types of electronic marketplace. This paper focuses on a market exchange as the "secondary market" for the perishable goods-that is, for the resellers to disposal and acquisition of excess perishable goods inventory. Follow the method of Yan(2005) and Shan chu(2008), we develop a model of secondary market with second-period selling price endogeneously determined to clear the consumer market in case of fixed manufacture supply quantity. In this model, one manufacturer and n resellers compose a tow-stage supply chain for perishable goods. The sale season is divided into two periods. At the beginning of first period, resellers order directly from the manufacturer with the price which endogeneously determined to cleare the market, and at the beginning of second period, electronic secondary market opens, resellers can trade inventory among themselves in it. The first-period selling price is endogenously given and the second-period selling price is endogeneously determined by the consumer market clearance condition. We endogenously derive the optimal decisions for the resellers, along with the equilibrium market price of the secondary market and second-period selling price. And based on the analysis of resellers\´ decisions, we investigate the impact of secondary market on the manufactures\´ supply price in the case of fixed supply quantity, and we found that the secondary market will force up the supply price with several given conditions.