Notation

Definition

a

Market demand

d

Quantity competition coefficient between the two channels $d\in \left[0,1\right]$

$\varphi$

Equity financing ratio $\varphi \in \left[0,1\right]$

$r_m$

Interest rate of trade credit $r_m\in \left(0,1\right)$

$r_f$

Bank loans rate/risk-free rate $r_f\in \left(0,1\right)$

$p_{r,y}^k$

Retail prices of the retailer in y scenario under k financing strategy

$q_{r,y}^k$

The order quantity of the retailer under y scenario under k financing strategy

${\pi }_{r,y}^k$

Expected payoff of the retailer under y scenario under k financing strategy

${\pi }_{m,y}^k$

Expected payoff of the manufacture under y scenario under k financing strategy