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A Study on Profit Distribution Based on the Partnership in Vertical Alliance

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Indexed by:会议论文

Date of Publication:2016-01-01

Included Journals:CPCI-SSH

Volume:54

Page Number:140-145

Key Words:Vertical alliance; Profit distribution; Partnership; Bargaining power

Abstract:The profit distribution is the most controversial issue in a vertical alliance, and the influence of partnership in the distribution of profits can not be underestimated. This paper argues that the degree of closeness between partners and bargaining power of cooperation are two important aspects in the vertical cooperative partnership. And we build a simplified game model of vertical alliance which composed of a upstream supplier and a downstream manufacturer, then analyze the profit distribution mechanism and the changes of the prices and the outputs after effecting by partnership. It found that the degree of closeness between partners and bargaining power of cooperation both can affect the profit, price and output of the alliance. The optimal area of closeness degree of cooperation is [0.59, 0.64], and it is also the selective interval of benefit distribution coefficient.

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