The decision model of vertical structure under Stackelberg game among supply chains

Abstract

Abstract: By taking two supply chains as a research object, each of them containing one manufacturer and one retailer, the problem involving Stackelberg game is discussed, when two supply chains adopt different decision structures, respectively. In particular, four decision structures between these two supply chains are analyzed, including the structures of decentralized-decentralized, decentralized-centralized, centralized- decentralized, centralized-centralized. It is found that (1) centralized decision is the dominate strategy for the leader supply chain;(2) as for the follower supply chain, whether adopting centralized decision or decentralized decision, it is depended on the substitutability degree of products and the selection of the leader supply chain; (3) when the substitutability degree of product is low, the structure of centralized-centralized is the equilibrium solution of single and repeat games; and when the substitutability degree of product is high, the structure of centralized-decentralized is the equilibrium solution of single game; while the structure of decentralized -decentralized is the equilibrium solution of repeat games.

Key words: multi-supply chains, price competition, decision, Stackelberg game

CLC Number:

F272.3

Li Baixun, Zhou Yongwu, Wang Shengdong. The decision model of vertical structure under Stackelberg game among supply chains[J]. Science Research Management, 2012, 33(12): 50-58.

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