Can I read Price Cap Models in Pharmaceutical Online-to-Offline Supply Chains on EtoBox?

Price Cap Models in Pharmaceutical Online-to-Offline Supply Chains by Zheng, Yi; Liu, Li; Shi, Victor; Liu, Bin; Huang, Wenxing; Bian, Peter is a Physics and Astronomy article available to read on EtoBox.

What is Price Cap Models in Pharmaceutical Online-to-Offline Supply Chains about?

Pharmaceutical supply chains are often highly complex with conflicting objectives of social welfare and profit maximization. Furthermore, there are various stakeholders including pharmaceutical manufacturer, distributors, retailers, patients, and the government. In this paper, we consider a two-stage supply chain consisting of one pharmaceutical manufacturer and a pharmacy with online and offline channels. We focus on four price cap models: no price cap regulation, pharmaceutical manufacturer’s price cap regulation, pharmacy price cap regulation, and linkage price cap regulation. We apply game theory, investigate how the price cap regulations affect the firms’ pricing, and evaluate the economic performance and social welfare of the dual-channel pharmaceutical supply chain. Our findings show that first, like the single-channel pharmaceutical supply chain, the profit of the regulated firm always decreases and the profit of the unregulated firm always increases when they are under one-sided price cap regulations. Second, the impacts of the linkage price cap regulation on the supply chain are more complicated depending on the linkage coefficient and market share. Overall, our findings

Who reads Price Cap Models in Pharmaceutical Online-to-Offline Supply Chains?

Author

Zheng, Yi; Liu, Li; Shi, Victor; Liu, Bin; Huang, Wenxing; Bian, Peter

Publisher

John Wiley and Sons; Hindawi Limited; Wiley (ISSN 1076-2787)

Published

2020

Language

EN

Field

Physics and Astronomy (Physical Sciences)