Pricing decisions of dual-channel structures

This paper studies pricing decisions of a dual-channel supply chain with a dual-channel retailer and a manufacturer who also adds an online channel. Firstly, we give the equilibrium prices under the centralized decision system and the decentralized decision system. Secondly, we analyze how the equilibrium prices depend on some important parameters such as the operational cost of online channel, the market basic demands of different consumers and the price-sensitive coefficient. At last, we compare the profits of the manufacturer and the retailer among different dual-channel structures and give the conditions where the retailer and the manufacturer add an online channel. At last, we use numerical examples to illustrate how the dual-channel structures affect the manufacturer´s profit and the retailer´s profit.