Article ID: | iaor20072689 |
Country: | Netherlands |
Volume: | 35 |
Issue: | 1 |
Start Page Number: | 83 |
End Page Number: | 94 |
Publication Date: | Jan 2007 |
Journal: | Operations Research Letters |
Authors: | Serin Yasemin |
Keywords: | game theory |
Consider two newsvendors: (i) they compete satisfying substitutable demands searching Nash equilibrium or (ii) one is the leader deciding first, the other responds optimally playing a Stackelberg game. The leader profits more than she does in (i). We present conditions under which the leader's profit does not improve from (i) to (ii).