Abstract Aimed at the joint pricing and coordination of mobile phone manufacturers and telecom operators who cooperate to provide “contract phone”, we established the consumer utility function considering the network externalities of the telecom service and built the profit models for the manufacturer and the operator. After analyzing the optimal price and optimal service level under centralized and decentralized situations, we found that the increase of the network externality could lead to the improvement of the service level and higher profits of supply chain members. Then we designed a coordination strategy combing cost-sharing contract and revenue-sharing contract. The results show that this “cost-sharing & revenue-sharing” contract can achieve the perfect coordination of the telecom supply chain and the increased profit of the system will rise with the network externalities of the telecom service. Finally, we analyzed the effects of contract parameters on the optimal decisions of supply chain by numerical examples.
2017, Vol. 14 
