The supplier and buyers, with different objectives and self-interest, are separate economic entities acting independently and opportunistically to maximize their individual profits. In this paper, a GBA model in the B2B market is studied, where one supplier faces 2 different retailers, who cooperate in the order decision making. Firstly, the optimal ordering decision of the retailers was analyzed. Then, from the perspective of the supplier, the optimal pricing strategy of the supplier is also studied. Finally, it is concluded that the group buying online auction is a useful and efficient pricing mechanism in the B2B e-market, under which, all members of the supply chain will improve their payoffs.
Chen, J.; Liu, Yunhui; and Song, Xiping, "A Study of Single-vendor and Multiple-retailers Pricing-Ordering Strategy under Group-Buying Online Auction" (2004). ICEB 2004 Proceedings. 12.