Investigating the Impact of Multiple Competition on Producer Pricing in the Food Industry

Abstract

Pricing is one of the most important and strategic decisions in the supply chain and can be called as one of the leading management arts. Pricing can have a huge impact on the sale of goods or services. One of the product pricing branches is the pricing of food products, which is of particular importance due to the particular circumstances of this market. Food products have a significant sensitivity due to the nature of corruption, the highly competitive nature of the industry, and the direct relationship with different consumer groups with different levels of income.In this study, two producers and two retailers were considered, one of these producers having a monopolistic market and the other having a multi-competitive market. The producer who has a monopolistic market only sends products to his retailer and the manufacturer with multiple competitive send goods to both retailers. In addition, the two scenarios are defined in a way that the first scenario is without green service and the second scenario applied green service. The first manufacturer only has the market of the first retailer and second-manufacturer hasboth the first and second-party retailers. Then the model was solved for different strategies and optimal strategies for each side of the chain were identified. Finally, numerical issues were presented, solved and analyzed in different dimensions.

Keywords: pricing, food products, competition, government policy, game theory.

DOI: 10.7176/IEL/9-4-05

Publication date:May 31^st 2019