Endogenous Third-Degree Price Discrimination in a Supply Chain with One Common Manufacturer and Duopoly Retailers

Table 1

Notations.

Notation	Description
	The utility a consumer derives from the product
	The price sensitivity of consumers with a high (low) price sensitivity
	The fraction of consumers with a high price sensitivity
	The consumers’ difference with respect to price sensitivity
	The consumers’ unit transportation cost
	The location of each consumer in the linear market
	The location of the indifferent consumer when the retailer does not acquire information
	The location of the indifferent consumer with a high (low) price sensitivity in market when the retailer acquires information
	The retailer ’s profit, , the manufacturer’s profit and the whole supply chain’s profit
Decision variables
	The manufacturer’s wholesale price
	The retailer ’s price when she (he) does not acquire information,
	The retailer ’s price for consumers with a high (low) price sensitivity in market when she (he) acquires information
	The retailer ’s order quantity