Research on the Competition Strategy of the Fresh Agricultural Products based on Hotelling Model

DOI

10.2991/lemcs-15.2015.249How to use a DOI?

Keywords

Hotelling Model; Electronic Retailer; Fresh agriculture product; Freshness.

Abstract

With the rapid development of e-commerce, fresh agricultural products have gradually begun to develop e-commerce market. However, fresh agricultural products are perishable in the process of transportation and sales. Based on Hotelling model, this paper studies how an electronic retailer make price and distribution decisions to compete with a traditional retailer in a linear city, considering the conditions of fresh agricultural products freshness influence consumer utility. The result shows that only when the cost difference between the two retailers is large enough, the electronic retailer can improve equilibrium profit by improve the distribution speed. And if the cost difference between the two retailers are small or large enough while the per unit distance transportation cost is large, electronic retailer can improve equilibrium profit through increase unit distance transportation cost.

Copyright

© 2015, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Jie Zhou
AU  - Tijun Fan
PY  - 2015/07
DA  - 2015/07
TI  - Research on the Competition Strategy of the Fresh Agricultural Products based on Hotelling Model
BT  - Proceedings of the International Conference on Logistics, Engineering, Management and Computer Science
PB  - Atlantis Press
SP  - 1251
EP  - 1253
SN  - 1951-6851
UR  - https://doi.org/10.2991/lemcs-15.2015.249
DO  - 10.2991/lemcs-15.2015.249
ID  - Zhou2015/07
ER  -