Should a Manufacturer Encroach on Its Retailer’s Operations with Quality Differentiated Products?

<table class="figure-group"><tr class="fig-image" id="a"><td><object data="https://static.hindawi.com/articles/ddns/volume-2017/8367547/figures/8367547.fig.003a.svgz" name="8367547.fig.003a" type="image/svg+xml"></object></td></tr><tr class="fig-caption"><td><b>(a) </b><svg height="14.0461pt" id="M79" style="vertical-align:-3.9436pt" version="1.1" viewbox="-0.0498162 -10.1025 47.1896 14.0461" width="47.1896pt" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink"><g transform="matrix(.013,0,0,-0.013,0,0)"><path d="M703 650H36V622C118 616 126 607 126 526V124C126 45 117 34 40 28V0H297V28C219 34 211 44 211 124V581C211 609 214 613 245 613H494C521 613 527 610 527 583V124C527 45 519 34 434 28V0H700V28C620 34 612 44 612 124V526C612 605 620 616 703 622V650Z" id="g113-145"></path><glyph.data ascent="3473" descent="-2876" horiz-adv-x="738" vert-adv-y="738" xpluscharwidth="9.594"></glyph.data></g><g transform="matrix(.0091,0,0,-0.0091,9.594,-5.741)"><path d="M486 158C486 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380C389 338 368 319 321 288C323 345 329 372 349 422C339 442 322 461 305 470C289 461 271 442 262 422C281 372 287 345 290 288C243 319 222 338 189 380C167 381 142 376 125 366C125 347 133 322 145 304C198 296 225 288 275 262C225 236 198 227 145 220C133 201 125 177 126 158C141 148 167 143 189 144C222 186 243 205 290 236C288 179 282 152 262 102C272 82 289 63 306 54C322 63 340 82 350 102C330 152 324 179 321 236C368 205 390 186 422 144C444 143 470 148 486 158Z" id="g50-43"></path><glyph.data ascent="3443" descent="-2856" horiz-adv-x="611" vert-adv-y="611" xpluscharwidth="45.46308167"></glyph.data></g><g transform="matrix(.0091,0,0,-0.0091,39.903,3.784)"><path d="M870 650H622L613 619C694 615 708 606 708 559C708 531 702 477 686 396L636 136H633L281 650H127L120 619C180 616 198 611 212 592C227 572 232 558 220 503L166 254C148 169 139 131 126 89C112 43 85 35 33 32L24 0H280L286 32C208 37 189 44 189 93C189 124 198 179 212 250L267 526H271L622 -8H655L732 396C747 477 762 532 770 556C785 600 798 616 862 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<div>Key conditions of Model <svg height="8.68572pt" id="M78" style="vertical-align:-0.0498209pt" version="1.1" viewbox="-0.0498162 -8.6359 7.31558 8.68572" width="7.31558pt" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink"><g transform="matrix(.013,0,0,-0.013,0,0)"><path d="M541 160L512 170C485 116 462 88 439 67C411 41 376 35 318 35C272 35 238 37 224 48C207 61 205 85 212 121L290 533C305 611 308 615 391 622L397 650H139L133 622C217 615 221 612 206 533L126 118C111 41 103 34 23 26L17 0H474C489 31 528 124 541 160Z" id="g113-77"></path><glyph.data ascent="3473" descent="-2876" horiz-adv-x="553" vert-adv-y="553" xpluscharwidth="7.189"></glyph.data></g></svg>.</div>

Discrete Dynamics in Nature and Society

fig3

Figure 3

Figure 3: Should a Manufacturer Encroach on Its Retailer’s Operations with Quality Differentiated Products? 