简介:Retailpriceandpromotionaleffortaretwoimportantparametersonwhichdemandofacommoditylargelydepends.Thispaperdevelopsandanalyzesatwo-echelonsupplychainwheremarketdemanddependsonbothretailpriceandsaleseffort.Thecentralizedmodelisstudiedasthebenchmarkcase,andthewholesaleprice-onlycontractisstudiedasthebasecaseinwhicheachentitytriestomaximizeitsindividualprofit.Differentcontractmechanismsareimplementedtooutperformthebasecaseintermsofbothtotalchain'saswellasindividualprofits.Comparisonsamongthecoordinatingcontractsareprovidedsothatanyentitymaychoosethebetteronefromavailablecontractsafterthecontractparametersarenegotiated.Themodelisextensivelyexaminedthroughanumericalexample.