Prices and Profits in Centralized Dual-Channel Supply Chains Under Competition

In this study, chain to chain competition between two dual-channel supply chains has been investigated in conjunction with channel conflict. We analyze their optimal prices and profits under three scenarios of centralized operation - one simultaneous decision making scenario and two sequential pricing scenarios. Our findings indicate that for each supply chain, the optimal prices of the sequential game in the leader position are always greater than or equal to the optimal prices of the sequential game as the follower. Market prices are least in a simultaneous pricing scenario. We also find that for any dual-channel supply chain in a pricing duopoly, optimal total supply chain profits are the highest for the sequential game as the follower, followed by the sequential game as the leader and the simultaneous move game has the least profit among the three scenarios. Copyright (C) 2022 The Authors.