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open-access-imgOpen AccessCAPACITY SHARING STRATEGY WITH SUSTAINABLE REVENUE-SHARING CONTRACTS
Author(s)
Junlong Chen,
Jiayan Shi,
Jiali Liu
Publication year2021
Publication title
technological and economic development of economy
Resource typeJournals
PublisherVilnius Gediminas Technical University
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.
Subject(s)business , cost sharing , cournot competition , duopoly , economics , environmental economics , finance , industrial organization , international trade , law , marginal cost , marginal revenue , microeconomics , political science , revenue , revenue sharing , sustainable development , tariff
Language(s)English
SCImago Journal Rank0.634
H-Index47
ISSN2029-4913
DOI10.3846/tede.2021.16030

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