Abstract
Increasing numbers of restaurants pay a commission to seek a business relationship with a third-party website as an alternative distribution channel for traditional offline selling. Whether to build the cooperation and how to set the online marketing strategy are the major concern of these restaurants. In this paper, a Stackelberg game is established to study online pricing strategies of a restaurant, as well as the optimal service effort level of a third-party website. Two optimal cooperative strategies in different scenarios are obtained, which are comprehensively influenced by the restaurant’s retail price and the website’s user base.
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