Pricing decisions in dual-channel supply chains with service cooperation under asymmetric information

Abstract

This paper analyzes a dual channel supply chain with service cooperation under asymmetric information. We consider the games with asymmetric risk information and symmetric information respectively, derive the corresponding equilibrium strategies, and conduct detailed comparisons and analyses. We study the impact of service quality and asymmetric information on the optimal strategies. We find that the impact of manufacturer's service quality on direct channel price is greater than its on retail price, and retailer's service quality has a greater impact on retail price under with asymmetric information. Retailer would like to share his private information with manufacturer in order to get more profits.