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Parallel importation and price competition in a duopoly supply chain

Shavandi, H ; Sharif University of Technology | 2015

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  1. Type of Document: Article
  2. DOI: 10.1080/00207543.2014.974841
  3. Publisher: Taylor and Francis Ltd , 2015
  4. Abstract:
  5. Nowadays, diversion of products distribution from authorised channels to the gray markets is one of the main challenges of manufacturers. Suppose an international supplier distributes the products in several countries with different prices. In parallel importation, there are unauthorised distributers who supply products with a lower price and import them to a higher price market. The problem of parallel importation considering a manufacturer and a competitor is analysed using the game theory approach in this article. We investigate the pricing strategy for manufacturers and the effect of unauthorised distributer on price, market share and profit. We also investigate the performance of different policies in a numerical study and show managerial insights
  6. Keywords:
  7. Supply chain; gray markets ; Chains ; Commerce ; Competition ; Costs ; Manufacture ; Supply chains ; Market share ; Parallel importation ; Price competition ; Pricing strategy ; Products distributions ; Game theory
  8. Source: International Journal of Production Research ; Volume 53, Issue 10 , 2015 , Pages 3104-3119 ; 00207543 (ISSN)
  9. URL: http://www.tandfonline.com/doi/abs/10.1080/00207543.2014.974841