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Paper Information

Journal:   PRODUCTION AND OPERATIONS MANAGEMENT   spring-summer 2019 , Volume 10 , Number 1 (18) ; Page(s) 83 To 110.

Pricing in Channel Book Supply Chain Considering Possibility of Selling E-Book under Fixed and Decreasing Demands

* Faculty of Engineering, University of Isfahan, Iran
The purpose of this research is to determine the optimal wholesale and final prices of printed and electronic books in a dual channel supply chain. Here, a comprehensive sensitivity analysis has been conducted on different supply chain parameters such as demand elasticity coefficients, customer tendency to printed books and book production costs. The effect of these variables on optimal prices, demands and final profit is analyzed. Results of centralized and fixed demand mode reveal that if the coefficient of customers' tendency to printed book is bigger than 0. 5, then the final printed books' price will be higher than e-book prices. Pricing in decentralized model is done using the Stackelberg equilibrium. Results show that wholesale prices of p-book in decentralized and fixed demand system are equal to selling prices in centralized system, but the final selling price of p-book in decentralized system is higher than centralized one. In both systems, the e-book selling price is the same. In the fixed demand condition, either e-books are not published or they are simultaneously published with their printed versions; however, in the decreasing demand mode, e-books may be introduced to market at any time during books' life period.
Keyword(s): Electronic Book,Pricing,Printed Book,Publisher,Supply Chain
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