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.004a.svgz" name="8367547.fig.004a" type="image/svg+xml"></object></td></tr><tr class="fig-caption"><td><b>(a) </b><svg height="13.9365pt" id="M97" style="vertical-align:-3.834pt" version="1.1" viewbox="-0.0498162 -10.1025 45.0888 13.9365" width="45.0888pt" 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 177 478 202 466 220C413 228 386 236 336 262C386 288 413 297 466 304C478 323 486 347 485 366C470 376 444 381 422 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="15.15408167"></glyph.data></g><g transform="matrix(.0091,0,0,-0.0091,9.594,3.784)"><path d="M567 167L534 181C505 122 482 94 454 70C428 46 385 42 330 42C288 42 248 44 235 55C216 70 213 91 220 130L295 528C310 609 314 611 401 618L409 650H140L131 618C222 611 224 609 209 528L133 126C118 47 108 41 25 33L18 0H497C514 33 554 126 567 167Z" id="g50-77"></path><glyph.data ascent="3443" descent="-2856" horiz-adv-x="579" vert-adv-y="579" xpluscharwidth="14.86288263"></glyph.data></g><g transform="matrix(.013,0,0,-0.013,18.579,0)"><path d="M535 230V280H52V230H535Z" id="g117-33"></path><glyph.data ascent="3473" descent="-2876" horiz-adv-x="587" vert-adv-y="587" xpluscharwidth="26.21"></glyph.data></g><g transform="matrix(.013,0,0,-0.013,29.115,0)"><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="38.708999999999996"></glyph.data></g><g transform="matrix(.0091,0,0,-0.0091,38.709,-5.741)"><path d="M486 158C486 177 478 202 466 220C413 228 386 236 336 262C386 288 413 297 466 304C478 323 486 347 485 366C470 376 444 381 422 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="44.269081670000006"></glyph.data></g><g transform="matrix(.0091,0,0,-0.0091,38.709,3.784)"><path d="M622 479C622 589 545 650 400 650H146L140 618C229 609 230 602 215 527L135 132C117 43 112 41 27 32L18 0H305L313 32C213 40 205 44 222 132L251 284L324 262H365C484 269 622 333 622 479ZM528 477C528 356 420 305 344 305C300 305 276 314 259 321L303 554C311 597 313 600 331 606C345 611 361 614 379 614C463 614 528 580 528 477Z" id="g50-81"></path><glyph.data ascent="3443" descent="-2856" horiz-adv-x="640" vert-adv-y="640" xpluscharwidth="44.532980800000004"></glyph.data></g></svg></td></tr><tr class="fig-image" id="b"><td><object data="https://static.hindawi.com/articles/ddns/volume-2017/8367547/figures/8367547.fig.004b.svgz" name="8367547.fig.004b" type="image/svg+xml"></object></td></tr><tr class="fig-caption"><td><b>(b) </b>The horizontal projection of key conditions</td></tr></table>

<div>Key conditions of the three models.</div>

Discrete Dynamics in Nature and Society

fig4

Figure 4

Figure 4: Should a Manufacturer Encroach on Its Retailer’s Operations with Quality Differentiated Products? 