The free return-freight insurance(RI)provided by online retailers can effectively solve the return risk of customers'online shopping and improve customers'purchase intention,while it also increases the return rate and raises the operating cost of online retailers.Hence,the issues about RI have been widely concerned.In this paper,it is assumed that duopoly online retailers respectively sell high-and low-quality products to cus-tomers in the same market,and decide whether to provide free RI to customers.Under the four strategy com-binations,the mathematical models are constructed to maximize the retailer's profit respectively.The optimal retail price,demand and profit are derived,the Nash equilibrium strategy of two retailers is obtained and the sensitivity of the key parameters such as premium is analyzed.
维普
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