Pricing decisions of two complementary products in a fuzzy environment

Abstract

Pricing decisions of two complementary products in a fuzzy environment are considered in this paper. The purpose of this paper is to analyze the changes of the optimal retail pricing of two complementary products under two different decentralized decision scenarios (e.g., Nash game case and Stackelberg game case). As a reference model, the centralized pricing model is also established. The closed-form optimal pricing decisions of the two complementary products are obtained in the above three decision scenarios. Some interesting management insights into how pricing decisions vary with decision scenarios are given. © 2014 Li Wang et al.