| Article ID: | iaor19971755 |
| Country: | United States |
| Volume: | 2 |
| Issue: | 1 |
| Start Page Number: | 49 |
| End Page Number: | 72 |
| Publication Date: | Apr 1996 |
| Journal: | International Journal of Operations and Quantitative Management |
| Authors: | Arcelus F.J., Srinivasan G., Bhadury J. |
| Keywords: | gaming |
This paper is intended to provide a detailed game-theoretical analysis of the buyer-vendor coordination problem embedded in the price-discount inventory model. Pure and mixed, cooperative and non-cooperative strategies are developed. Highlights of the paper include the full characterization of the Pareto optimal set, the determination of profit-sharing mechanisms for the cooperative case and the derivation of a set of parameter-specific non-coopertive mixed strategies. A numerical example is presented to illustrate the main features of the model.