Modeling hybrid distribution channels: A game-theoretic analysis

Park, Seong Yong and Keh, Hean Tat (2003) Modeling hybrid distribution channels: A game-theoretic analysis. Journal of Retailing and Consumer Services, 10 3: 155-167. doi:10.1016/S0969-6989(03)00007-9

Author Park, Seong Yong
Keh, Hean Tat
Title Modeling hybrid distribution channels: A game-theoretic analysis
Journal name Journal of Retailing and Consumer Services   Check publisher's open access policy
ISSN 0969-6989
Publication date 2003-05
Sub-type Article (original research)
DOI 10.1016/S0969-6989(03)00007-9
Volume 10
Issue 3
Start page 155
End page 167
Total pages 13
Place of publication Oxford, United Kingdom
Publisher Pergamon
Language eng
Abstract Traditionally, firms use intermediaries to reach final consumers. More recently, some firms have chosen to rely exclusively on direct channels, bypassing all forms of intermediaries (e.g., Internet retailers). This paper looks at the firm's decision-making when hybrid channels exist (where the firm uses both direct and indirect channels). Using game theory, we compare the equilibria under the indirect and vertically integrated channels with the equilibrium under the hybrid channel with respect to the marketing decision variables, particularly pricing and profit distribution. Some results are quite surprising, and set up the benchmark comparisons for future work in this area.
Keyword Hybrid channel
Nash equilibrium
Stackelberg game
Price discrimination
Q-Index Code C1
Q-Index Status Provisional Code
Institutional Status Non-UQ
Additional Notes Available online 27 February 2003.

Document type: Journal Article
Sub-type: Article (original research)
Collection: UQ Business School Publications
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Created: Tue, 29 Nov 2011, 15:57:36 EST by Karen Morgan on behalf of UQ Business School