203. Multiproduct Price Competition on a Retail Platform
Invited abstract in session TD-17: Optimizing Complex Systems: Advances in Combinatorial and Stochastic Techniques, stream Combinatorial Optimization.
Tuesday, 14:30-16:00Room: Esther Simpson 2.08
Authors (first author is the speaker)
| 1. | Lusheng Shao
|
| Faculty of Business and Economics, The University of Melbourne | |
| 2. | Ying-Ju Chen
|
| Hong Kong University of Science and Technology |
Abstract
Many online retail platforms operate as both a reseller and a marketplace. This paper studies price competition between a multiproduct manufacturer and a retail platform in which the manufacturer sells its products directly to consumers by paying a commission fee to the platform (i.e., agency selling) while wholesaling the products to the platform for reselling. We develop a Nash game model under multinomial logit demand to characterize the firms' equilibrium pricing behaviors and investigate the impact of agency selling on the equilibrium outcomes.
Keywords
- Supply Chain Management
- Game Theory
- Revenue Management and Pricing
Status: accepted
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