Analysis of Dual-Channel Competitive pricing under the restricted consumers

摘要

The advent of e-commerce has prompted many manufacturers to redesign their traditional channel structures by engaging in e-tail sales. This paper develops a model that conceptualizes the restriction to e-tail consumer, and the degree to which customers accept a e-tail channel as a substitute for the traditional retail channel. Therefore the price competition between these two channels under different market game settings are considered in our paper. It is found that an optimal wholesale price exists under a different market structure that could be used to encourage the retailer to accommodate the additional e-tail channel.