Coalition Analysis on Two Manufactures and Two Retailers Supply Chain via Cooperative Game Theory

Taiki Saso, Tatsushi Nishi

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

In this study, we consider a coalition analysis on the pricing problem for a decentralized supply chain model in which two manufacturers and two retailers with price competitions. In the pricing game, we analyze the equilibrium solutions with perfect competition, grand coalition and partial cooperation between manufacturers and retailers. The results show the externality between coalitions for supply chain members. Therefore, the pricing game is represented as a partition function game. The stable profit allocation in each alliance structure is obtained based on cooperative game theory for the partition function game. We derive the new finding that if there are multiple partial alliances within the same alliance structure, the profit within the partial alliance is smaller than the profit when there is only one partial alliance. Then, it is shown that the pessimistic and optimistic Shapley values of the manufacturers are lower than the optimistic personal alliance value of the manufacturer when the product substitutability is lower and the store substitutability is higher.

Original languageEnglish
Title of host publicationAdvances in Production Management Systems. Artificial Intelligence for Sustainable and Resilient Production Systems - IFIP WG 5.7 International Conference, APMS 2021, Proceedings
EditorsAlexandre Dolgui, Alain Bernard, David Lemoine, Gregor von Cieminski, David Romero
PublisherSpringer Science and Business Media Deutschland GmbH
Pages619-628
Number of pages10
ISBN (Print)9783030859053
DOIs
Publication statusPublished - 2021
EventIFIP WG 5.7 International Conference on Advances in Production Management Systems, APMS 2021 - Nantes, France
Duration: Sept 5 2021Sept 9 2021

Publication series

NameIFIP Advances in Information and Communication Technology
Volume632 IFIP
ISSN (Print)1868-4238
ISSN (Electronic)1868-422X

Conference

ConferenceIFIP WG 5.7 International Conference on Advances in Production Management Systems, APMS 2021
Country/TerritoryFrance
CityNantes
Period9/5/219/9/21

Keywords

  • Cooperative game theory
  • Partial coalition
  • Shapley value
  • Supply chain management

ASJC Scopus subject areas

  • Information Systems
  • Computer Networks and Communications
  • Information Systems and Management

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