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Notation

Definition

a

Market demand

d

Quantity competition coefficient between the two channels d[0,1]

ϕ

Equity financing ratio ϕ[0,1]

rm

Interest rate of trade credit rm(0,1)

rf

Bank loans rate/risk-free rate rf(0,1)

pkr,y

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

qkr,y

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

πkr,y

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

πkm,y

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