We model a supply chain scenario in which the genuine manufacturer is uncertain whether a retailer sells counterfeits alongside authentic products. We evaluate the optimal strategies for players under wholesale price contracts and two-part tariff contracts and analyse the impact of the...

Counterfeiting is a widespread phenomenon across various sectors ranging from aerospace components to software products. Retailers often cite manufacturer taking exorbitant margins as a reason for indulging in counterfeiting. In this problem, we attempt to understand retailer counterfeiting...