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| Pricing and Dual-Channel Strategies in Pharmaceutical Supply Chain Influence on Public Welfare and Self-Medication |
| LI Shiyang，DAN Bin，LI Hongxia |
| 1. Chongqing University, Chongqing, China；2.Chongqing University of Technology, Chongqing, China |
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Abstract Given that more and more patients buy medicines online for self-medication, this study takes the joint effects of medical institutions public welfare and self-medication ability into consideration. After establishing the theoretical models of pharmaceutical supply chain, this study analyzes the effects of medical institutions public welfare and self-medication ability on the equilibriums. Furthermore, by comparing equilibriums under different channel strategies, this study proposes the optimal channel strategies for pharmaceuticals provider. The result shows that, when the condition for dual-channel establishes, the pharmaceuticals provider always benefits from dual-channel strategy, however, the profit of medical institutions will be decreased. Under the situation that there exists low price strategy, the channel conflict among supply chain members under dual-channel strategy can be diminished by profit transfer scheme, and the supply chain can produce higher social welfare under this strategy. Meanwhile, when facing the choices between low price strategy and high price strategy for online channel under dual-channel strategy, the pharmaceuticals provider always chooses the low price strategy. Finally, compared with single channel strategy, regardless the high price strategy or the low price strategy taken for online channel, dual-channel strategies can improve the accessibility to health service.
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Received: 15 December 2016
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