Abstract
This paper, considering risk aversion and fair concern, establishes a dynamic price game model of a dual-channel supply chain in which dual-channel retailer sells products through traditional channel and online channel and the online retailer only sells products through online channel. The stability of the system and the influences of different parameter values on utilities are analyzed emphatically using game theory and nonlinear dynamic theory, such as 2D and 3D bifurcation diagram, parameter plot basin, chaos attractor, and sensitivity to initial value. The results find that the system is more likely to lose stability and fall into chaos with the customer demand fluctuating greatly. The system enters into chaos through flip bifurcation with the increase of the price adjustment speed; adjusting the risk-aversion levels or the fairness concern levels of the two retailers can make the system be in a stable state or delay the occurrence of system instability. When the system is in chaos, the average utility of the online retailer will decrease and one of the dual-channel retailers will increase. Using the state feedback control method, the system can return to a stable state from chaos by selecting appropriate control parameters. The research of this paper is of great significance to the decision-makers’ price decision and supply chain operation management.
Highlights
The rapid development of information technology and the Internet has provided good conditions and development space for the establishment of online channel
If the price adjustment speeds of the two retailers are in the stable area, system (12) will achieve a stable state at the Nash equilibrium point after a finite game
When the price adjustment speed is in the red range, the system (12) will stabilize at the Nash equilibrium point after finite game; when the price adjustment speed increases beyond the stable range, the system (12) will experience flip bifurcation and arrive at the chaotic state
Summary
The rapid development of information technology and the Internet has provided good conditions and development space for the establishment of online channel. In view of this, based on the dual-channel supply chain environment, considering that the two retailers have risk-aversion and fair concern behaviors, this paper will construct a dynamic price game model of dual-channel supply chain using game theory and nonlinear dynamic theory and focus on the analysis of the stability characteristics of equilibrium point and the effect of parameters on the system stability and profits. On this basis, the state feedback control method is used to control the chaotic behavior of the system. The research in this paper has great guidance significance for decision-maker’s price decision and supply chain operation management
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