| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 1023406 | Transportation Research Part E: Logistics and Transportation Review | 2013 | 14 Pages |
•This study aimed at a two-echelon e-retailing system with two duopolistic suppliers.•Delivery time and price are the competitive instruments.•Equilibrium decisions are satisfactory and can prevent a destructive price war.•Two suppliers would have different niches of business in terms of delivery time and price.
This study investigates the dynamics between price and lead time for an e-retailing system in which one of its commodities is offered by two duopolistic suppliers. A Stackelberg game is formulated by considering the two suppliers as the leaders and the e-retailer as the follower. The proposed model assists the channel members in getting an equilibrium relationship in a competitive environment. The results suggest that when a supplier chooses a shorter lead time as the competitive strategy, the other supplier should choose a lower price for counteraction, and channel members should understand the characteristics of demand before promoting their commodities.
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