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...

We consider a quantity flexibility 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...