Structure selection in dual-channel supply chains: The common or the exclusive shop?

Abstract

This paper investigated the influence of suppliers' profits who manufacture the alternative commodities and the consumer utility, in the situations that the suppliers choose the common or the excusive shop to sell their commodities. By comparing suppliers' profits and consumer utility, the analysis suggested such a conclusion: in general, suppliers' profits and consumer utility in the exclusive shop model will be higher than the common shop model; But under certain conditions, suppliers' profits and consumer utility in the common shop model are better than exclusive shop model, and conditions depend on parameters like channel base demand, channel cost and channel substitutability.