Jiwen Ge is an assistant professor at the Institute of Supply Chain and Analytics at Dongbei University of Finance and Economics. He did his PhD at Eindhoven University of Technology under the supervision of Professors Jan Fransoo and Dorothee Honhon. He then worked as a postdoc at Tuck School of Business under the supervision of Professor Brian Tomlin. His research centers on the emerging-market retail operations with a focus of mom-and-pop stores. His work has been published in Manufacturing and Service Operations Management.
Emerging markets are featured with co-existence of modern retail represented by supermarkets and traditional retail represented by small-sized family-operated retailers referred to as nanostores. We develop two game theoretical models to study the market structure without and with the presence of a supermarket respectively. We use a simultaneous game to study retail pricing competition between the two retail formats. For the wholesale pricing stage, we use Stackelberg framework to model the nanostore retail supply chain while we use Nash Bargaining to model the supermarket retail supply chain. We characterize the equilibria and also study the impact of the supermarket’s presence on the consumer welfare.