Inventory and pricing policies under competition

Inventory and pricing policies under competition

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Article ID: iaor1993896
Country: Netherlands
Volume: 12
Issue: 4
Start Page Number: 253
End Page Number: 261
Publication Date: Oct 1992
Journal: Operations Research Letters
Authors:
Keywords: economics
Abstract:

The paper extends the profit maximizing economic order quantity (EOQ) model to the case of a symmetric oligopoly consisting of sellers of a homogeneous product who compete with each other for the same potential buyers. The key feature differentiating this paper from the extant EOQ literature is that, for both uniform pricing and quantity discount pricing cases, the formulations and equilibrium strategies of the present models explicitly depend on the number of competing sellers. From the resulting symmetric equilibria, the paper derives interesting economic implications.

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