Collective profitability in semi-competitive intermediation networks

Abstract

We analyze intermediation business processes that enable companies to use multiple distribution channels for expanding their market horizon of potential customers that are interested in purchasing their products and/or services. These distribution channels are represented by sequences of intermediation transactions supported by usually self-interested middle-agents that enable the connection of the providers with the end costumers. We propose a new formal model of network-structured intermediation business processes represented as Directed-Acyclic-Graphs. Using this model we obtained sound theoretical results of collectively profitable intermediation transactions. This paves the way for further proposal of optimal pricing strategies of the participating agents in semi-competitive environments.