Study On Complex Dynamics Of Price And Service Game Models Based On Dual Channel Supply Chain

With the rapidly development of E-commerce and recognition of the onlinedirect channel, the sales model of retailers shifts from single channel to dual-channelwhich is online direct channel and traditional channel. The competition amongretailers is focused on price and service competition, which is the process oflong-term game. Based on the studies of related literatures, we established a price andservice game models of dual channel supply chain on management theory, economictheory and chaotic dynamics theory. Simulation shows the complex behavior of themodel. It is a realistic guide for the competition of dual-channel retailers. The maininnovative points and findings are as follows:1. This dissertation established a model of price games and service competitionin dual channel supply chain market based on nonlinear dynamic theory. The businessobjectives of retailers are assumed to be different, which is closer to reality thanprevious studies. We measure performances of chaotic properties of the model byusing the indexes such as the price bifurcation diagram, Lyapunov exponent and thechaotic attractors. We measured the systems performance by profits index andanalyzed the influences of chaos on the oligarchs’ profit in the model. Thisdissertation has created links between nonlinear dynamic theory and economicstheory compared with the previous studies.2. Service difference between channels is introduced into the model, andcomplex system theory is used to show the long-time game. We find that thedifferences between channel recognition and service play an important role on thesystem stability. Our study has found that the optimal strategy is in the stable regionof the Nash equilibrium. The retailer who controls the chaos could get first-moveradvantage firstly.3. We established a supply chain model which has a dual-channel retailer andsingle-channel retailer. The dual-channel retailer who sells products to consumersthrough network and the traditional store should coordinate price between the twochannels, and make price competition to single-channel retailer. The pricing strategyand the influence that the parameters’ changes of firms having different expectationsexert to the stability of the market are discussed. 4. Delayed bounded rationality is introduced into the discrete dynamic systemand its influence on system stability is analyzed. It is shown that adopting price delaydecision may not always enhance the competitive strength of oligarchs with computersimulation. Our study found that price delay decision could not change the Nashequilibrium point, but have influence on the system stability. We put forward to thereasonable introduced time of price delay decision, and it will further enrich theresearch of delay theory.