The Impact Of Free-riding In Supply Chains With Different Structures And Coordination Mechanism

With the development of information technology and innovation of business model,ecommerce has been widely penetrated into all walks of life.With the rapid development of ecommerce,it has changed the structure of most supply chains from a single channel to multi channel.Online channel has price advantage because of its low cost,but offline channel can provide consumers with better experience and service.Consumers can evaluate a product in a traditional retailer but purchase it in an online retailer at a lower price because of the difference between online and offline channel,that is free riding.Under different types of retail supply chain structure,the impact of free-riding traditional retailers is different.Free riding will affect the enthusiasm of traditional retailer,and then affect the entire retail supply chain.However,the concept of "new retail" was put forward and developed,and the integration of online and offline gradually attracted people's attention.The reason for the different attitude towards free riding is that the retail supply chain structure is different.Therefore,the impact of free riding on different retail supply chains will be worth studied.Based on the existing research and the current development of retail industry,this paper first divides the current retail supply chain structure.According to the principle of different subordinates,four kinds of retail supply chain structures are obtained: independent structure,joint structure of manufacturer and traditional retailer,joint structure of manufacturer and online retailer,and joint structure of traditional retailer and online retailer.Secondly,based on the Game Theory and the construction of a mathematical model,the related demand function and profit function of the main body of the supply chain are depicted,and the optimal value of the relevant decision variables is solved to study the impact of free-riding under different retail supply chain structures.Through the analysis and comparison of sales effort,traditional retailer's profits,network retailer's profits and manufacturer's profits under different retail supply chain structures,it draws relevant conclusions: The sales effort of manufacturer and traditional retailer joint structure is the highest,manufacturers fully utilize traditional retail channels to develop the market;The combination of traditional retailer and online retailer will achieve a win-win situation,which also verifies the superiority of the "new retail" retail mode.Free-riding will reduce the sales effort of traditional retailers,reduce the ability of traditional retailers to open up markets,and ultimately reduce the demand of the entire supply chain.Therefore,the adverse impact of free-riding on traditional retailers will also spread to the entire supply chain.It is necessary to study relevant coordination mechanisms to simplify the adverse effects of free-riding.In view of the adverse effects of free-riding,this paper studies two coordination mechanisms: charging fixed service fees and joint promotion,and verifies that charging fixed service fees can not alleviate the adverse effects of free-riding,while joint promotion can alleviate the adverse effects of free-riding.