We consider a revenue sharing contract in a supply chain, under price dependent demand. The demand is random and follows a multiplicative model. We show that the retail price that maximizes expected retailer profits, is higher than the price that would maximize profits if there was no demand...

Customer switching costs are an important factor in account-based services such as telecommunications, financial, insurance and brokerage services. In these businesses, existing customers incur significant costs if they switch to another provider. Such costs include physical configuration and...