z-logo
open-access-imgOpen Access
CAPACITY SHARING STRATEGY WITH SUSTAINABLE REVENUE-SHARING CONTRACTS
Author(s) -
Junlong Chen,
Shi Jia-yan,
Jiali Liu
Publication year - 2021
Publication title -
technological and economic development of economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.634
H-Index - 47
eISSN - 2029-4921
pISSN - 2029-4913
DOI - 10.3846/tede.2021.16030
Subject(s) - revenue sharing , revenue , business , industrial organization , tariff , cost sharing , marginal cost , marginal revenue , duopoly , microeconomics , sustainable development , environmental economics , economics , finance , cournot competition , international trade , political science , law
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.

The content you want is available to Zendy users.

Already have an account? Click here to sign in.
Having issues? You can contact us here