Revenue sharing contract model based on CVaR rules: research on contract phone card

Contract phone card is a kind of special product with follow-up service. For this particular product, we designed a revenue sharing contract for communication operator, based on a research of product pricing and ordering problem about communication operator and its sales agent. The contract will encourage the sales agent to improve the quantity of cards and achieve the purpose of increasing the number of users, by sharing a certain proportion of fixed subsequent earnings to the sales agent. Then, we used CVaR risk measurement tools to study pricing and ordering problem of sales agent in the revenue sharing contract. The results show that appropriate sharing factor could achieve the optimal coordination between communication operator and its tier-one agent, and maximize the benefit of the supply chain.