By Dawei Zheng
This court cases quantity comprises chosen papers offered on the 2014 overseas convention on schooling administration and administration technological know-how (ICEMMS 2014), held August 7-8, 2014, in Tianjin, China. the target of ICEMMS2014 is to supply a platform for researchers, engineers, academicians in addition to commercial execs from world wide to give their examine effects and improvement actions in schooling administration and administration technological know-how.
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Extra info for 2014 International Conference on Education Management and Management Science
Indb 21 5/15/2015 9:32:49 AM extra profit is greater than the increased cost. In this case, the behavior of retailers neither derives from non-market factors nor influences the profit of suppliers. On the other hand, it increases the profit of suppliers with the increasing welfare of retailers and consumers. Therefore, this behavior should not be judged as monopoly or illicit competition. As a matter of fact, retailers cannot raise the price of suppliers without limitation based on the existence of buyer power.
Apparently, size P0BQ2O + size P1CQ1O > 2 × size P0 AQ0O. This formula illustrates the better situation under asymmetric prices now. It should be noted that not only do the asymmetric prices bring about an increase in the profit of retailers, but they also contribute to a higher profit level of suppliers and consumers. e. the total welfare of the society. Secondly, let us analyze the strategy of high-price for consumers and low-price for suppliers as a contrast. As shown in Figure 3, the retailer keeps the price of consumers constant at P0 and diminishes the price of suppliers from P0 to P1.
Firstly, in terms of the reasons, retailers charge suppliers slotting allowance because of the groupcross network externality of two-sided markets. Retailers gather a large number of consumers by offering platforms and services, increasing the utility of suppliers. As compensation, it is reasonable for retailers to charge slotting allowance. This does not violate the market rule of fair trade but reflects the fair principle of the market. Secondly, in terms of the results, suppliers gain more profit from the platform system of retailers due to crossgroup network externality in spite of the increased cost caused by slotting allowance.