Pricing Problems in the Pharmaceutical Supply Chain with Mixed Channel: A Power Perspective

This paper builds Pharmaceutical Manufacturer Stackelberg, Pharmacy Stackelberg and Nash game models with without price cap regulation. The optimal pricing, performance social welfare are derived compared in three different power structures to find out how regulation affect the drug supply chain. More over other chain members always allows pharmaceutical manufacturer obtain more profits. However, pharmacy cannot benefit from its dominant position market changes wholesale cap. Additionally, balanced structure may harm under certain conditions. Another interesting finding is that restricted deeply affects financial manufacturer-dominated pharmacy-dominated markets. research results can provide important management insights, which will be beneficial government design smart price-limiting policies take into account relationships of