scholarly journals Optimal Inter-Organization Control of Collaborative Advertising with Myopic and Far-Sighted Behaviors

Entropy ◽  
2021 ◽  
Vol 23 (9) ◽  
pp. 1144
Author(s):  
Yinfei Xu ◽  
Yafei Zu ◽  
Hui Zhang
Keyword(s):  
Supply Chain ◽  
Differential Game ◽  
Cooperative Game ◽  
Stackelberg Game ◽  
Numerical Analyses ◽  
Pareto Improvement ◽  
Optimal Advertising ◽  
Game Players ◽  
Theoretical Results

This paper investigates the optimal inter-organization control of collaborative advertising considering the myopic and far-sighted behaviors. Taking a two-echelon supply chain as an example, four kinds of differential game models including myopic Stackelberg game, far-sighted Stackelberg game, myopic cooperative game and far-sighted cooperative game are studied. The results show that the optimal advertising efforts of both manufacturer and retailer in the myopic situation decrease with time. But they remain constant in the far-sighted situation. The Pareto improvement applies to both game players from the non-cooperative game to the cooperative game. The numerical analyses are conducted to further investigate the theoretical results and to guide the inter-organization control of collaborative advertising in practice.

scholarly journals A stochastic differential game of low carbon technology sharing in collaborative innovation system of superior enterprises and inferior enterprises under uncertain environment

2018 ◽  
Vol 16 (1) ◽  
pp. 607-622 ◽  
Author(s):  
Shi Yin ◽  
Baizhou Li
Keyword(s):  
Differential Game ◽  
Cooperative Game ◽  
Stackelberg Game ◽  
Innovation System ◽  
Stochastic Differential Game ◽  
Low Carbon ◽  
Nash Game ◽  
Low Carbon Economy ◽  
Collaborative Innovation ◽  
Technology Level

AbstractConsidering the fact that the development of low carbon economy calls for the low carbon technology sharing between interested enterprises, this paper study a stochastic differential game of low carbon technology sharing in collaborative innovation system of superior enterprises and inferior enterprises. In the paper, we consider the random interference factors that include the uncertain external environment and the internal understanding limitations of decision maker. In the model, superior enterprises and inferior enterprises are separated entities, and they play Stacklberg master-slave game, Nash non-cooperative game, and cooperative game, respectively. We discuss the feedback equilibrium strategies of superior enterprises and inferior enterprises, and it is found that some random interference factors in sharing system can make the variance of improvement degree of low carbon technology level in the cooperation game higher than the variance in the Stackelberg game, and the result of Stackelberg game is similar to the result of Nash game. Additionally, a government subsidy incentive and a special subsidy that inferior enterprises give to superior enterprises are proposed.

Dynamic cooperative advertising strategy in OAO supply chain with customer return

2020 ◽  
Vol 54 (5) ◽  
pp. 1537-1553
Author(s):  
Duanyang Cao ◽  
Xumei Zhang ◽  
Lingli Yang ◽  
Jian Xiao
Keyword(s):  
Supply Chain ◽  
Cost Sharing ◽  
Stackelberg Game ◽  
Influence Factors ◽  
Third Party ◽  
Direct Channel ◽  
Decentralized System ◽  
Optimal Advertising ◽  
Retail Channel ◽  
Customer Returns

Nowadays many manufacturers are increasingly adopting their own online direct channel and the offline retail channel to sell their products as the quick development of e-commerce and third party logistics. To gain more and more market share, the manufacturer and the retailer implement unconditional return strategy, which does not affect secondary sales. We build a differential game model for the optimal advertising and the optimal advertising cost sharing proportion for centralized and decentralized OAO (Online and Offline) supply chain considering customer returns rates. We further analyze how the returns rates affect the optimal decisions of the manufacturer and the retailer. The results show that the returns rates, the brand reputation and the influence factors of retail channel goodwill on demand of online direct channel strongly influence the optimal advertising decisions. Furthermore, the retailer does not support for the manufacturer advertising efforts in Stackelberg game. Compared with the centralized OAO supply chain, the decentralized system results in channel inefficiency. To coordinate the channels, we design a two-way advertising cost-sharing contract. By this contract, each member of the supply chain reaches a win-win situation and is willing to cooperate. Numerical studies verify the conclusions of this paper.

scholarly journals Optimal Ordering and Disposing Policies in the Presence of an Overconfident Retailer: A Stackelberg Game

2015 ◽  
Vol 2015 ◽  
pp. 1-12 ◽  
Author(s):  
Zhigang Wang ◽  
Zhenchao Zhang ◽  
Chunfa Li ◽  
Lei Xu ◽  
Chang You
Keyword(s):  
Sustainable Development ◽  
Supply Chain ◽  
Numerical Analysis ◽  
Stackelberg Game ◽  
Supply Chain Performance ◽  
Newsvendor Model ◽  
Pareto Improvement ◽  
Basic Model ◽  
Optimal Ordering ◽  
The Impact

This paper investigates the impact of the retailer’s overconfident behavior on supply chain performance. We start with a basic model on the rational newsvendor model and investigate the retailer’s optimal ordering decision and expected profit. Next, we extend the basic model and introduce an overconfident retailer. We find that the retailer’s overconfident behavior does not necessarily damage the supply chain compared with the basic model when the overconfident level does not exceed a threshold. We also design the cooperation and buyback mechanism and conduct numerical analysis to compare the manufacturer’s and retailer’s expected profits and real profits with those in the basic newsvendor model. It can achieve Pareto improvement in the supply chain when the overconfident level is low. When the retailer’s overconfident level exceeds a threshold, the retailer’s ordering decision cannot make the whole supply chain sustainable development.

Research on Pricing Decision of Multi-Level Remanufacturing Reverse Supply Chain Based on Stackelberg Game

2012 ◽  
Vol 220-223 ◽  
pp. 290-293
Author(s):  
Zhan Feng Zhou
Keyword(s):  
Game Theory ◽  
Supply Chain ◽  
Cooperative Game ◽  
Theoretical Basis ◽  
Equilibrium Solution ◽  
Stackelberg Game ◽  
Reverse Supply Chain ◽  
Pricing Decision ◽  
Pricing Problems ◽  
Multi Level

In order to resolve all kinds of pricing problems in reverse supply chain, this paper constructed a multi-level remanufacturing reverse supply chain consisted of single recycler, single manufacturer and single retailer and established a non-cooperative stackelberg game by applying game theory. By solving this model, the equilibrium solution of stackelberg game was got. In non-cooperative game the maximize profits of every company in reverse supply chain and the total profits of the entire supply chain was acquired by using the equilibrium solution. The results show that this model can provide a theoretical basis for the pricing decision of remanufacturing reverse supply chain.

scholarly journals Joint decisions for Cold Chain Cross-border E-commerce with Overseas Warehouse Logistics Outsourcing

2021 ◽  
Vol 261 ◽  
pp. 03033
Author(s):  
Ying-Mei Jiang ◽  
Jin-Jin Mou
Keyword(s):  
Supply Chain ◽  
Cooperative Game ◽  
Stackelberg Game ◽  
Theoretical Models ◽  
Cold Chain ◽  
Optimal Decision ◽  
Effort Level ◽  
Cross Border ◽  
Joint Decisions ◽  
Logistics Demand

Considering a two-echelon supply chain consisting of one overseas warehouse logistics provider and one cross-border e-commerce retailer with cold chain products over a finite time horizon, this paper studies the optimal decision-making of logistics pricing, freshness-keeping effort level and cold chain product pricing under the Stackelberg game and the cooperative game, and makes a comparative analysis of the two models. Through two-person cooperative game of transferable payment, it is proved that (1)both the total supply chain profit and individual profit of the two parties are greater than the Stackelberg game;(2) the freshness level is higher than that of the Stackelberg game;(3) the logistics price is lower than that of the Stackelberg game;(4) e-commerce transaction scale (i.e. logistics demand scale) is higher than that of the Stackelberg game; and (5) the retail price of the cold chain product is lower than the Stackelberg game. Numerical results bear out the validity of the theoretical models.

scholarly journals Research on Closed-Loop Supply Chain Decision-Making in Different Cooperation Modes with Government’s Reward-Penalty Mechanism

2021 ◽  
Vol 13 (11) ◽  
pp. 6425
Author(s):  
Quanxi Li ◽  
Haowei Zhang ◽  
Kailing Liu
Keyword(s):  
Supply Chain ◽  
Closed Loop ◽  
Stackelberg Game ◽  
Recycling Rate ◽  
Transfer Payment ◽  
Closed Loop Supply Chain ◽  
Asymmetry Of Information ◽  
Optimal Decisions ◽  
The Government ◽  
The Impact

In closed-loop supply chains (CLSC), manufacturers, retailers, and recyclers perform their duties. Due to the asymmetry of information among enterprises, it is difficult for them to maximize efficiency and profits. To maximize the efficiency and profit of the CLSC, this study establishes five cooperation models of CLSC under the government‘s reward–penalty mechanism. We make decisions on wholesale prices, retail prices, transfer payment prices, and recovery rates relying on the Stackelberg game method and compare the optimal decisions. This paper analyzes the impact of the government reward-penalty mechanism on optimal decisions and how members in CLSC choose partners. We find that the government’s reward-penalty mechanism can effectively increase the recycling rate of used products and the total profit of the closed-loop supply chain. According to the calculation results of the models, under the government’s reward-penalty mechanism, the cooperation can improve the CLSC’s used products recycling capacity and profitability. In a supply chain, the more members participate in the cooperation, the higher profit the CLSC obtain. However, the cooperation mode of all members may lead to monopoly, which is not approved by government and customers.

scholarly journals Joint Innovation Investment and Pricing Decisions in Retail Supply Chains with Customer Value

2021 ◽  
Vol 13 (3) ◽  
pp. 1309
Author(s):  
Jiali Qu ◽  
Benyong Hu ◽  
Chao Meng
Keyword(s):  
Supply Chain ◽  
Cooperative Game ◽  
Customer Value ◽  
Business Models ◽  
Value Added ◽  
Revenue Sharing ◽  
Nash Bargaining ◽  
Product Price ◽  
Pricing Decisions ◽  
Game Equilibrium

In the retail industry, customer value has become the key to maintaining competitive advantages. In the era of new retail, customer value is not only affected by the product price, but it is also closely related to innovations, such as value-added services and unique business models. In this paper, we study the joint innovation investment and pricing decisions in a retailer–supplier supply chain based on revenue sharing contracts and customer value. We first find that, in the non-cooperative game, equilibrium only exists in the supplier Stackelberg game. However, revenue sharing contracts cannot coordinate the supply chain in the non-cooperative game. By considering supply chain members’ bargaining power, we find that there exists a unique equilibrium for the Nash bargaining product. In addition, revenue sharing contracts can coordinate the supply chain and achieve the optimal consumer surplus. When the supply chain is coordinated, supply chain profit is allocated to the supply chain members based on their bargaining powers.

scholarly journals Decisions and Coordination in E-Commerce Supply Chain under Logistics Outsourcing and Altruistic Preferences

Mathematics ◽  
2021 ◽  
Vol 9 (3) ◽  
pp. 253
Author(s):  
Yuyan Wang ◽  
Zhaoqing Yu ◽  
Liang Shen ◽  
Runjie Fan ◽  
Rongyun Tang
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Stackelberg Game ◽  
Consumer Preferences ◽  
Third Party ◽  
Altruistic Behavior ◽  
Fixed Cost ◽  
Equilibrium Solutions ◽  
Factors Affecting ◽  
Dual Channel

Considering the peculiarities of logistics in the electronic commerce (e-commerce) supply chain (ESC) and e-commerce platform’s altruistic preferences, a model including an e-commerce platform, third-party logistics service provider, and manufacturer is constructed. Based on this, three decision models are proposed and equilibrium solutions are obtained by the Stackelberg game. Then, an “altruistic preference joint fixed-cost” contract is proposed to maximize system efficiency. Finally, numerical analysis is used to validate the findings of the paper. The article not only analyzes and compares the optimal decisions under different ESC models, but also explores the intrinsic factors affecting the decisions. This paper finds that the conclusions of dual-channel supply chains or traditional supply chains do not necessarily apply to ESC, and that the effect of altruistic behavior under ESC is influenced by consumer preferences. Moreover, there is a multiparty win–win state for ESC, and this state can be achieved through the “altruistic preference joint fixed-cost” contract. Therefore, the findings of this paper contribute to the development of an e-commerce market and the cooperation of ESC members.

scholarly journals Single-Manufacturer Multi-Retailer Supply Chain Models with Discrete Stochastic Demand

2021 ◽  
Vol 13 (15) ◽  
pp. 8271
Author(s):  
Yaqing Xu ◽  
Jiang Zhang ◽  
Zihao Chen ◽  
Yihua Wei
Keyword(s):  
Dynamic Programming ◽  
Supply Chain ◽  
Computational Complexity ◽  
Stackelberg Game ◽  
Programming Model ◽  
Dynamic Programming Method ◽  
Game Model ◽  
Chain Model ◽  
Stochastic Demands ◽  
Demand Models

Although there are highly discrete stochastic demands in practical supply chain problems, they are seldom considered in the research on supply chain systems, especially the single-manufacturer multi-retailer supply chain systems. There are no significant differences between continuous and discrete demand supply chain models, but the solutions for discrete random demand models are more challenging and difficult. This paper studies a supply chain system of a single manufacturer and multiple retailers with discrete stochastic demands. Each retailer faces a random discrete demand, and the manufacturer utilizes different wholesale prices to influence each retailer’s ordering decision. Both Make-To-Order and Make-To-Stock scenarios are considered. For each scenario, the corresponding Stackelberg game model is constructed respectively. By proving a series of theorems, we transfer the solution of the game model into non-linear integer programming model, which can be easily solved by a dynamic programming method. However, with the increase in the number of retailers and the production capacity of manufacturers, the computational complexity of dynamic programming drastically increases due to the Dimension Barrier. Therefore, the Fast Fourier Transform (FFT) approach is introduced, which significantly reduces the computational complexity of solving the supply chain model.

scholarly journals Dynamic Adjustment Mechanism and Differential Game Model Construction of Mask Emergency Supply Chain Cooperation Based on COVID-19 Outbreak

2021 ◽  
Vol 13 (3) ◽  
pp. 1115
Author(s):  
Shufan Zhu ◽  
Kefan Xie ◽  
Ping Gui
Keyword(s):  
Supply Chain ◽  
Differential Game ◽  
Production Technology ◽  
Wholesale Price ◽  
Transfer Payment ◽  
Dynamic Adjustment ◽  
Supply Chain System ◽  
Government Subsidies ◽  
Technology Investment ◽  
The Impact

Incorporating the impact of the COVID-19 pandemic on the mask supply chain into our framework and taking mask output as a state variable, our study introduces the differential game to study the long-term dynamic cooperation of a two-echelon supply chain composed of the supplier and the manufacturer under government subsidies. The study elaborates that government subsidies can provide more effective incentives for supply chain members to cooperate in the production of masks compared with the situation of no government subsidies. A relatively low wholesale price can effectively increase the profits of supply chain members and the supply chain system. The joint contract of two-way cost-sharing contract and transfer payment contract can promote production technology investment efforts of the supply chain members, the optimum trajectory of mask production, and total profit to reach the best state as the centralized decision scenario within a certain range. Meanwhile, it is determined that the profits of supply chain members in the joint contract can be Pareto improvement compared with decentralized decision scenario. With the increase of production technology investment cost coefficients and output self-decay rate, mask outputs have shown a downward trend in the joint contract decision model. On the contrary, mask outputs would rise with growing sensitivity of mask output to production technology investment effort and increasing sensitivity of mask demand to mask output.

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