Coordination strategy for a dual-channel electricity supply chain with sustainability

Chen, Wei; Jing, Fuying; Zhong, Li

doi:10.3934/jimo.2021139

Cited by 4 publications

(1 citation statement)

References 24 publications

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“…Such suppliers who sell products through the direct channel would become the competitor of their retail partners [18]. Researchers argue that network externality [19], retailers' attitude towards the risk [20], governments' policies [21][22][23], strategies of competitors [24], and market demands [25], as well as the similarity between the channels [26], would deeply impact digital products frms' selection between the direct and retail channels.…”

Section: Literaturementioning

confidence: 99%

Channel Management for Digital Products in the Two-sided Market with Network Externality Effects

2023

Discrete Dynamics in Nature and Society

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Channel selection is a critical trade-off for digital products firms whose products are characterized by network externality. This work develops the models of consumers’ utility impacted by the network externality for two channel strategies of the digital product firms in the two-sided market: direct channel strategy and platform channel strategy. Deriving from the consumers’ utility, the optimization models of the two channel strategies are presented. The optimization models are solved through the Lagrangian method, and the comparative statics analysis is conducted to investigate the effect of network externality on optimality. Mathematical results show that if the intensity of network externality in the online platform surpasses that in the direct channel, the platform channel strategy dominates the other channel strategy; otherwise, the direct channel strategy is the firms’ optimal decision. In addition, the two channels share the equal optimal price, and the firms’ profit (and demand) would be positively impacted by the network effect and the products’ features but negatively impacted by the consumers’ learning cost. This work provides decision support for the digital product firms on channel selection in the context of the two-sided market.

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Section: Literaturementioning

confidence: 99%

Channel Management for Digital Products in the Two-sided Market with Network Externality Effects

2023

Discrete Dynamics in Nature and Society

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Influences of mechanisms on investment in renewable energy storage equipment

Chen

Tian

Zheng

et al. 2022

Environ Dev Sustain

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Price and carbon emission reduction technology competition in the electricity supply chain based on power structure

Chen,

Cui,

Quayson

et al. 2024

RAIRO-Oper. Res.

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This study considers the research on electricity pricing and carbon reduction technology decisions of electricity supply chain enterprises under different power structures, and constructs a two-level electricity supply chain game model composed of two electricity producers and a single electricity retailer. By comparing the equilibrium solution results, the main research results are as follows: (1) In the market structure where electricity producers and electricity retailer make decisions at the same time, electricity producers are more willing to invest in low-carbon technologies and increase carbon emission reduction. The electricity retailer also set the lowest electricity prices at this time, and electricity demand is the highest. (2) In the case of the Stackelberg game for electricity producers, the wholesale electricity price is the highest, and the electricity producers obtain the most profits. In the case of the Stackelberg game for electricity retailer, the electricity price is the highest, and the profit of the electricity retailer is the highest. (3) In the market structure dominated by electricity retailer, the electricity price is the highest, and the electricity producers reduce the investment in carbon emission reduction technology after observation; the carbon emission reduction intensity is the least, and the electricity demand is also the least. (4) With the increase of price competition coefficient, the carbon emission reduction intensity, electricity demand, electricity producers and electricity retailer profit increase. However, as the competition coefficient of carbon reduction technology increases, these equilibrium solutions decline. We verify the above conclusions using multi-agent simulation.

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Coordination strategy for a dual-channel electricity supply chain with sustainability

Cited by 4 publications

References 24 publications

Channel Management for Digital Products in the Two-sided Market with Network Externality Effects

Channel Management for Digital Products in the Two-sided Market with Network Externality Effects

Influences of mechanisms on investment in renewable energy storage equipment

Price and carbon emission reduction technology competition in the electricity supply chain based on power structure

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