Tourism Supply Chain Coordination through Revenue Sharing Contract

Abstract:

In this paper we develop revenue sharing contracts in a scenic spot –travel agency tourism supply chain. We use the Stackelberg game model to formulate the leader–follower relationship. By backward induction, we obtain equilibrium under the non-cooperative revenue sharing contract and the cooperative revenue sharing contract. Results show that the non-cooperative revenue sharing contract doesn’t meet the travel agency’s participation constraint while the cooperative revenue sharing contract can achieve coordination and Pareto improvement. Finally the Nash bargaining game suggests that scenic spot obtains a larger share of the profit growth due to its higher bargaining power.

• Periodical: Applied Mechanics and Materials (Volumes 644-650)
• Pages: 6093-6096
• DOI: https://doi.org/10.4028/www.scientific.net/AMM.644-650.6093
• Online since: September 2014
• Authors: Ting Long Zhang*, Yi Wang
• Keywords: Coordination, Revenue Sharing Contract, Tourism Supply Chain

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