Performance of a push supply chain under partial cross ownership with an effort-contingent demand

Supply chain under partial cross ownership (PCO) refers to the dyad in which each one holds part of its partner's shares. In a two-echelon push supply chain under the partial cross ownership, when the demand is affected by the retailer's effort, letting the retailer hold part of the supplier's shares doesn't affect the chain efficiency and both players' profits. However, when the demand is affected by the supplier's effort, letting the retailer hold part of the supplier's shares does affect the chain efficiency and both players' profits, and the supplier's profit increases with both its own percentage of shares held by the retailer and the retailer's share held by itself.