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| Decisions of Dual Channel Supply Chain when Considering Channel Power and Service Negative Spillover Effect |
| LI Wei，LI Kai，AN Gang |
| Northeastern University, Shenyang, China |
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Abstract Based on the change of channel power in dual channel supply chain, this paper studied its impacts on optimal decisions and supply chain performance by constructing manufacture Stackelberg model (MS model), vertical Nash model (VN model) and retailer Stackelberg model (RS model). The study finds that with the increase of service negative spillover effect, the optimal service level decreases and wholesale price increases in MS model, the optimal service level never changes, but wholesale price decreases in VN and RS model. The impact of service negative spillover effect on retailing price has something to do with spillover coefficient in MS model, but it decreases in VN and RS model. The profit of manufacture is biggest in MS model, but the profits of retailer in different channel power structure are related to service spillover. The changes of dual channel supply chain performance, direct channel performance and traditional channel performance in different channel power mainly depend on the service negative spillover and the market share of direct channel.
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Received: 07 July 2016
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2017, Vol. 14 
