CAPACITY SHARING STRATEGY WITH SUSTAINABLE REVENUE-SHARING CONTRACTS

14Citations
Citations of this article
4Readers
Mendeley users who have this article in their library.

Abstract

This paper develops a duopoly model to analyse capacity sharing strategy and the optimal revenue-sharing contract under a two-part tariff and examines the effects of capacity sharing, cost, and sharing charges in three scenarios. The paper uses the two-part tariff method and adds a more realistic assumption of incremental marginal costs to improve the research on capacity sharing strategies. The results show that capacity constraints affect the sustainable development of firms. A sustainable revenue-sharing contract can create a win-win situation for both firms and promote capacity sharing. Capacity sharing, cost, and the revenue-sharing rate have different impacts in different scenarios; the optimal revenue-sharing rate and fixed fee can be determined to maximise the profits of firms that share capacity. However, capacity sharing may not improve social welfare.

Cite

CITATION STYLE

APA

Chen, J., Shi, J., & Liu, J. (2021). CAPACITY SHARING STRATEGY WITH SUSTAINABLE REVENUE-SHARING CONTRACTS. Technological and Economic Development of Economy, 28(1), 76–100. https://doi.org/10.3846/tede.2021.16030

Register to see more suggestions

Mendeley helps you to discover research relevant for your work.

Already have an account?

Save time finding and organizing research with Mendeley

Sign up for free