Competitive newsvendor problems with the same Nash and Stackelberg solutions

Competitive newsvendor problems with the same Nash and Stackelberg solutions

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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:
Keywords: game theory
Abstract:

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).

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