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How to balance online healthcare platforms and offline systems? A supply chain management perspective

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  • Donghui Yang
  • Yan Wang
  • Shue Mei

Abstract

Given the sweeping changes to healthcare, the issues of how to properly price both online consultations and drugs and how to tune patient volumes between online and offline platforms remain to be resolved. In this paper, with considering patient options, we have examined three relevant scenarios through game theory analyses. The optimal profits of medical supply chain players and prices of consultation and drugs are deduced from equilibrium results. With an extensive study on the relations between drug prices and patient volumes, whether and how to use pricing strategies to avoid patient congestion are discussed in three scenarios.

Suggested Citation

  • Donghui Yang & Yan Wang & Shue Mei, 2021. "How to balance online healthcare platforms and offline systems? A supply chain management perspective," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(2), pages 502-515, March.
    • Handle: RePEc:wly:mgtdec:v:42:y:2021:i:2:p:502-515
    DOI: 10.1002/mde.3250
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    Cited by:

    1. Ao Shen & Peng Wang & Yongyuan Ma, 2022. "When crowding‐in and when crowding‐out? The boundary conditions on the relationship between negative online reviews and online sales," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 2016-2032, September.
    2. Liu, Huiyuan & Perera, Sandun C. & Wang, Jian-Jun, 2023. "Does the physicians’ medical team joining behavior affect their performance on an online healthcare platform? Evidence from two quasi-experiments," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 171(C).

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