A Newsvendor Problem with Revenue Sharing in B2B Marketplaces

Abstract:

This study examines channel performances of business-to-business electronic and traditional marketplaces for newsvendor problems under revenue-sharing contracts. A manufacturer, acting as a leader in the channel, offers a retailer a revenue-sharing contract and wholesale price. The retailer, acting as a follower in the channel, decides the product quantity and retail price. The numerical indicate that the profits of channel, manufacturer and retailer for the vertically decentralized channel in the electronic marketplaces are generally better off than those in the traditional marketplaces.

• Periodical: Advanced Materials Research (Volume 629)
• Pages: 924-926
• DOI: https://doi.org/10.4028/www.scientific.net/AMR.629.924
• Online since: December 2012
• Authors: Liang Tu Chen
• Keywords: Marketplace, Newsvendor, Revenue Sharing

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