JOURNAL OF SHANDONG UNIVERSITY(NATURAL SCIENCE) ›› 2024, Vol. 59 ›› Issue (9): 18-32.doi: 10.6040/j.issn.1671-9352.0.2023.315

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Competitive strategies among supply chains considering tariff and local identity of consumers

LIU Mingwu1,2, GUO Ling1, YAN Yue1, DU Shuoming1   

  1. 1. School of Economics and Management, Chongqing Jiaotong University, Chongqing 400074, China;
    2. Research Center of Port Logistics Management and Shipping Economics in Chongqing, Chongqing 400074, China
  • Published:2024-10-10

Abstract: Considering the factors of tariff and local identity of consumers, a competitive game model of two supply chains with two manufacturers as Stackelberg leaders is constructed, studies the optimal pricing strategies of two competitive supply chains are studied, and the influence of tariff and local identity of consumers on the profit elasticity of supply chains is analyzed. The results show that:(1)with the increase of tariffs, the wholesale price of domestic manufacturers decreases, while the sales price of retailer 1, the wholesale price of foreign manufacturers and the sales price of retailer 2 increase; with the enhancement of consumers awareness of local identity, the pricing of each member of the two chains increases, and when consumers awareness of local identity is weak, product A has more price advantage than product B.(2)With the increase of tariffs, the profits of domestic manufacturers and retailers 1 decrease, while the profits of foreign manufacturers and retailers 2 increase, and the impact of tariff changes on consumer surplus is related to the strength of consumers local identity consciousness; with the enhancement of consumers awareness of local identity, the profits of each member of the two chains increase, and the impact of changes in consumers awareness of local identity on consumer surplus is related to the level of tariff rate.(3)When the local identity consciousness is weak(the tariff rate is low), the profit elasticity of multinational supply chain members is greater than that of foreign local supply chain members, that is, the profits of multinational supply chain members are more sensitive to the change of tariff rate(local identity consciousness); properly enhancing consumers local identity can slightly slow down the losses caused by the rising tariff rate to the members of transnational supply chains, without causing damage to foreign local supply chains themselves.

Key words: tariff, local identity, supply chain competition, profit resilience

CLC Number: 

  • F273
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