Podcast
Questions and Answers
What are the assumptions that underpin the game-theoretic model?
What are the assumptions that underpin the game-theoretic model?
- The selling cost for the retailer is normalized to zero (correct)
- The retailer incurs a selling cost of c per unit of product sold in the direct channel
- The production cost for the manufacturer is normalized to zero
- The manufacturer has an advantage in the sales process
In the model, what advantage does the retailer typically enjoy in the sales process?
In the model, what advantage does the retailer typically enjoy in the sales process?
- The retailer has zero production cost (correct)
- The retailer incurs a selling cost of c per unit of product sold in the direct channel
- The retailer has an advantage in real-world supply chain environments
- The retailer enjoys a lower selling cost than the manufacturer
What are the two distribution channels respectively facing?
What are the two distribution channels respectively facing?
- Selling costs for the retailer and production costs for the manufacturer
- Retail and direct channels
- Inverse demand functions (correct)
- Real-world supply chain environments
What does the model assume about the selling cost for the retailer?
What does the model assume about the selling cost for the retailer?
What is assumed about the production cost for the manufacturer in the model?
What is assumed about the production cost for the manufacturer in the model?
Why does the model assume a selling cost of c per unit of product sold in the direct channel for the manufacturer?
Why does the model assume a selling cost of c per unit of product sold in the direct channel for the manufacturer?
What does the symbol θ represent in the context of the dual-channel supply chain model?
What does the symbol θ represent in the context of the dual-channel supply chain model?
What does 'a > c' signify in the dual-channel supply chain model?
What does 'a > c' signify in the dual-channel supply chain model?
Why is the linear demand function used in the dual-channel supply chain model?
Why is the linear demand function used in the dual-channel supply chain model?
What does the parameter 'b' represent in the dual-channel supply chain model?
What does the parameter 'b' represent in the dual-channel supply chain model?
According to the given text, what does 'θ ∈ (0, 1)' imply about channel substitutability?
According to the given text, what does 'θ ∈ (0, 1)' imply about channel substitutability?
What does 'a' represent in the context of the dual-channel supply chain model?
What does 'a' represent in the context of the dual-channel supply chain model?
What does the inequality 'a/c > 3 - θ / ((1 - θ )(3 + θ ))' ensure in the dual-channel supply chain model?
What does the inequality 'a/c > 3 - θ / ((1 - θ )(3 + θ ))' ensure in the dual-channel supply chain model?
What is the main implication of specifying differentiation between channels in terms of variety rather than quality?
What is the main implication of specifying differentiation between channels in terms of variety rather than quality?
What is one of the reasons for consumers to avoid online shopping, as mentioned in the text?
What is one of the reasons for consumers to avoid online shopping, as mentioned in the text?
'Some consumers may avoid offline shopping in bricks-and-mortar stores owing to shopping costs and nuisances' - What does this statement suggest about consumer behavior?
'Some consumers may avoid offline shopping in bricks-and-mortar stores owing to shopping costs and nuisances' - What does this statement suggest about consumer behavior?
