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Pricing decision for substitutable products with retail competition in a fuzzy environment

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  • Zhao, Jing
  • Tang, Wansheng
  • Wei, Jie

Abstract

This paper studies the pricing problem of substitutable products in a supply chain with one manufacturer and two competitive retailers. The consumer demands and manufacturing costs are of uncertainty, which are described by fuzziness. Based on different market structures, one centralized pricing model and three decentralized pricing models are developed, and the corresponding analytical equilibrium solutions are obtained using the game-theoretic approach. Finally, numerical examples are presented to illustrate the effectiveness of the theoretical results, and to gain additional managerial insights.

Suggested Citation

  • Zhao, Jing & Tang, Wansheng & Wei, Jie, 2012. "Pricing decision for substitutable products with retail competition in a fuzzy environment," International Journal of Production Economics, Elsevier, vol. 135(1), pages 144-153.
    • Handle: RePEc:eee:proeco:v:135:y:2012:i:1:p:144-153
    DOI: 10.1016/j.ijpe.2010.12.024
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    References listed on IDEAS

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