A manufacturer supplies a newsvendor product to a dominant retailer, who does not know the manufacturer's unit production cost k. The expected retail demand is a function of the unit retail price p. For this increasingly prevalent but rarely analyzed scenario, we compare the performance of...

We investigate two very common pricing schemes for a Stackelberg-dominant retailer: percentage-markup and dollar-markup. We show that when a dominant retailer switches from dollar to percentage markup, the channel’s “overall pie” and the retailer’s “pie-piece” are both enlarged. In...

A manufacturer supplies a retailer who has private superior knowledge about three system parameters; namely, market size, market sensitivity, and her retail-processing cost. For each parameter, the manufacturer's imperfect knowledge is characterized by a subjective distribution. Should the...