This paper develops a two-period game model of a supply chain consisting of one manufacturer and one retailer to investigate the pricing and effort investment decisions when customer satisfaction is considered. We assume that both players are risk averse and divide the retailer's effort into...

This paper presents a continuous time optimization model for a dynamic pricing and inventory control problem in a dual-channel supply chain system. We consider a manufacturer's redesign of traditional channel structures, based on customer behaviors, by engaging in direct Internet sales. While...