Notation

description

c

Manufacturing cost

w

Wholesale price

a

Basic potential market demand

$b_1$

Price competition parameter (online-offline)

$b_2$

Price competition parameter (online-online)

$p_{mo}$

Price online of manufacturer

$p_{rf}$

Price offline of retailer

$p_{ro}$

Price online of retailer

$\theta$

Showrooming effect coefficient

t

Manufacturer’s share in the online market

s

Sales effort level

k

Sales effort cost coefficient

$\lambda$

Bargaining power of manufacturer

$\beta$

Bargaining power of retailer

$D_{mo}$

Online demand for manufacturer

$D_{rf}$

Offline demand for retailer

$D_{ro}$

Online demand for manufacturer

${\pi }_m$

Manufacturer profit

${\pi }_r$

Retailer profit

${\pi }_{sc}^c$

Supply chain profit in centralized mode

${\pi }_{sc}^d$

Supply chain profit in decentralized mode

${\pi }_{sc}^{co}$

Supply chain profit in coordination mode