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New product introduction incentives for suppliers and a common retailer

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2020
Kırcı, Kubilay.
In this thesis, we investigate the effect of the new product introduction in a supply chain of two suppliers and a common retailer. We study two settings. In this first, we find the two-product equilibrium in which each supplier produces one product and sells his product through a two echelon supply chain. In the first stage, suppliers announce their wholesale price simultaneously. Then, the retailer sets the retail price that maimizes her profit. In the second setting, one of the suppliers considers introducing to a category that consists of two incumbent products. Then, similar to first setting, we consider the wholesale price and the consequent retail price decision of the new product. In our study, all products are partially substitutable and have price-dependent linear demand. In addition, we investigate the effect of the slotting fee on the new product entry decisions and we compare the decentralized supply chain decisions with those of the centralized system.