Journal of Industrial Engineering Research in Production Systems

Journal of Industrial Engineering Research in Production Systems

A Duopoly Model in Cournot Markets for Chain-to-Chain Competition Using Visitors in Supply Chains: A Game Theoretic Approach

Document Type : Research Paper

Authors
Hossein Khosroshahi 1
Mahdi Nezami 2
1 Assistant Professor, Faculty of Industrial and Systems Engineering, Isfahan University of Technology, Isfahan, Iran
2 M.A. student, Faculty of Industrial and Systems Engineering, Isfahan University of Technology, Isfahan, Iran
10.22084/ier.2023.5423
Abstract
In this paper, we consider a Cournot Market for Chain-To-Chain Competition, which includes two distinct competing supply chains. Each supply chain has one Manufacturer, one Visitor, and one Retailer. The Retailer is in common between the two chains. This article will investigate the impact of using visitors to attract retailers as much as possible by the manufacturer. Each visitor should try to convince retailers to order more by paying a cost named Visit Cost in this article. After selling each unit of considered products, the manufacturer would pay a percentage of the wholesale price. It is assumed that there is a Stackelberg game between the manufacturer and visitor in each supply chain, in which the manufacturer is the leader. Furthermore, there is a Nash competition between manufacturers and the retailer.
Keywords
Supply Chain Management
Pricing
Visitor
Game Theory
Cournot Market
Subjects
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Journal of Industrial Engineering Research in Production Systems
Volume 11, Issue 22
September 2023
Pages 159-169