Abstract
We consider a supply chain of a mobile app consisting of a platform and a developer, where demand is uncertain and is affected by the both the selling price and the quality level of the app. Two types of contract are investigated, based on the commission scheme stipulated by the platform: commission rate and fixed fee. For each contract type, we derive closed-form expressions for equilibrium assuming that the parties are risk sensitive. For the case of risk-neutral parties, we provide a numerical comparison.
| Original language | English |
|---|---|
| Pages (from-to) | 1144-1149 |
| Number of pages | 6 |
| Journal | IFAC-PapersOnLine |
| Volume | 58 |
| Issue number | 19 |
| DOIs | |
| State | Published - 1 Aug 2024 |
| Event | 18th IFAC Symposium on Information Control Problems in Manufacturing, INCOM 2024 - Vienna, Austria Duration: 28 Aug 2024 → 30 Aug 2024 |
Bibliographical note
Publisher Copyright:Copyright © 2024 The Authors.
Keywords
- commission-rate contract
- digital supply chain
- fixed-fee contract
- pricing
- quality
- risk sensitivity