Article ID: | iaor201111220 |
Volume: | 39 |
Issue: | 6 |
Start Page Number: | 471 |
End Page Number: | 474 |
Publication Date: | Nov 2011 |
Journal: | Operations Research Letters |
Authors: | Koulamas Christos, Kyparisis George J |
Keywords: | Nash equilibrium |
A well‐studied problem in the supply chain management literature considers a two‐tier supply chain for a homogeneous product with a single manufacturer, multiple retailers and a general inverse demand function. The problem has been analyzed in the literature without a formal mathematical treatment of the existence/uniqueness of equilibria. Furthermore, the existence/uniqueness results derived for related models are not extendable to our model. The objective of this paper is to derive sufficient conditions for the existence/uniqueness of Stackelberg–Nash–Cournot equilibria for the two‐tier problem.