The Model Of Revenue Sharing Contract Based On Cvar

With the evolution of mobile communication technology and increase of the data transmission rates, mobile application program is constantly enriched. In the same time,3G mobile internet and other emerging industries are developed accordingly. However, the market demand level is gradually rising which requires the communication carriers to seize market shares, integrate business’ internal and external resources and cooperate with other enterprises in the supply chain.This paper takes the phone card’s optimal pricing and ordering problems of the communication carrier (supplier) and its first agent (retailer) as the research object and design a new revenue sharing contract which a percentage of the subsequent phone words fee belonging to supplier will be shared to the retailer in order to motivate retailer to increase the order quantity. Moreover, because the retailer takes on the most risk derived from demand uncertainty; we take the retailer’s risk preference into consideration via CVaR and studied the application of designed revenue sharing contract in the phone card’s pricing and ordering problem.It can help communication carrier to aggressively explore and develop potential new users, gain more market shares and devise stimulation strategies to its first agent through the establishment of the contract. Meanwhile, help to the first agent to get the optimal pricing and ordering strategies and provide the reference for their decision-making.