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| Notation | Definition |
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| Wholesale prices of product 1 |
| Wholesale prices of product 2 |
| Unit disposal cost of unsold fresh agricultural product |
| Sales price of product 1 through traditional channels |
| Sales price of product 2 through traditional channels |
| Sales price of product 1 through online sales channels |
| Retailer’s actual order quantity of product 1 |
| Retailer’s actual order quantity of product 2 |
| Quantity of product 1 that the supplier can sell |
| The maximum quantity of product 1 that produced by supplier 1 |
| Quantity of product 1 that the supplier can distribute to the retailer |
| Actual demand for product 1 in offline channels |
| Actual demand for product 1 in online channels |
| Total market demand for product 1 |
| Market share of product 1 in traditional channels |
| Random disturbance term of market demand |
| Substitution rate between products 2 and 1 |
| The sales cycle of fresh agricultural product |
| Freshness of fresh produce at time ; when , |
| The elasticity index of market demand to price |
| The elasticity index of market demand to freshness |
| Retailer’s profit function |
| Profit function for supplier 1 |
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