Impact of Heterogeneous Consumers on Pricing Decisions under Dual-Channel Competition

Algorithm 1

Pseudocode for the dual-channel Stackelberg game.

FUNCTION StackelbergGame ()

(1) ;

(2) finalPw = finalPr = finalPo = 0.0;

(3) finalπm = finalπr = 0.0;

(4) FOR (; ;  +=) {

(5) bestPo = bestPr = ;

(6) bestπm  = bestπr ;

(7) FOR (; ;  +=) {

(8)  maxπr = maxπm = maxPr = 0.0;

(9)  FOR (; ;  +=) {

(10)   (πm, πr) = simulation ();

(11)   IF (maxπr  πr) {

(12)    maxπr = , maxπm = ;

(13)    maxPo = ;

(14)   }

(15)  }

(16)  IF (bestπm < maxπm) {

(17)   bestπm = maxπm, bestπr = maxπr;

(18)   bestPr = maxPr, bestPo = ;

(19)  }

(20) }

(21) IF (finalπm < bestπm) {

(22)  finalπm = bestπm, finalπr = bestπr;

(23)  finalPw = , finalPr = bestPr, finalPo = bestPo;

(24) }

(25) }

(26) RETURN (finalPw, finalPr, finalPo, finalπm, finalπr);