Research on Nash Equilibrium of Dual-Channel Supply Chain Based on Wholesale Price Discrimination and Sales Efforts

Table 1

Notations used in this paper.

Symbol	Description	Additional information
d	Channel demand
Subscript “1,” “2,” “3”	Respectively represent the parameters of traditional retail channel, network direct marketing channel, and manufacturer
a	Total demand of the maximum potential market	a ≥ 0
φ	Market share of the network direct sales channel	0 < φ < 1
	Channel sales price
b	Price elasticity coefficient	b ≥ 0
θ	Cross-price elasticity coefficient	θ ≥ 0
c	Cost of sales effort	c ≥ 0
λ	Sales effort demand coefficient (the cost of c sales effort will cause λc demand increase for this channel)	λ ≥ 0
μ	Positive external spillover coefficient of sales efforts (demand increase caused by sales effort of other channels is μc)	μ ≥ 0
π	Enterprise profit
ω	Manufacturer’s wholesale price	ω ≥ 0