Price Cap Models in Pharmaceutical Online-to-Offline Supply Chains

Table 1

Notations.

Notations	Descriptions
	Pharmaceutical manufacturer’s unit production cost
	Offline channel’s unit cost
	Online channel’s unit cost
	Pharmaceutical manufacturer’s unit wholesale cost
	Pharmacy’s unit offline retail price;
	Pharmacy’s unit online retail price;
	Wholesale price cap imposed by the government
	Retail price cap imposed by the government
	The customer demand via offline
	The customer demand via online
	Linkage coefficient between the wholesale price cap and the retail price cap under the linkage price cap regulation,
	Pharmaceutical manufacturer’s profit
	Pharmacy’s profit
	Total profit of the pharmaceutical supply chain,
	The patient surplus
	Social welfare,