Title :
Analysis of Competitive Pricing on Retailing Channels
Author :
Cheng, Peng ; Yelin Fu ; Kin Keung Lai
Author_Institution :
Dept. of Manage. Sci., City Univ. of Hong Kong, Hong Kong, China
Abstract :
The present work is concerned with the problem of competitive pricing strategy when the direct marketer opens either online or bricks-and-mortar stores to compete with the traditional retailer. In this study, we consider the competitive pricing between the direct marketer and the traditional retailer under the Bertrand and the Stackelberg market structure. Four pricing strategies, namely, SB, SO, BB and BO are investigated and compared to derive the optimal strategy.
Keywords :
game theory; pricing; retailing; BB strategy; BO strategy; Bertrand market structure; SB strategy; SO strategy; Stackelberg market structure; bricks-and-mortar; competitive pricing strategy; direct marketer; retailing channels; traditional retailer; Cities and towns; Educational institutions; Games; Indexes; Inspection; Mortar; Pricing; encroachment; game thoery; pricing;
Conference_Titel :
Business Intelligence and Financial Engineering (BIFE), 2013 Sixth International Conference on
Conference_Location :
Hangzhou
Print_ISBN :
978-1-4799-4778-2
DOI :
10.1109/BIFE.2013.5
