Title :
Nash equilibrium retail prices in a linear duopoly market
Author :
Hamaguchi, T. ; Nakade, K.
Author_Institution :
Dept. of Ind. Eng. & Manage., Nagoya Inst. of Technol., Nagoya, Japan
Abstract :
In this study Nash equilibrium retail prices in a linear duopoly market are analyzed. It is found that the simple model, in which consumers buy items less than the critical price and do not buy otherwise, has theoretical problems and may have no equilibrium prices. The modified market model, which has two-stage critical prices, is proposed and the demand functions on retail prices are analyzed. This demand model is applied to a supply chain model with one supplier and two retailers.
Keywords :
game theory; oligopoly; pricing; retailing; supply and demand; supply chain management; Nash equilibrium retail prices; demand model; linear duopoly market; modified market model; supply chain model; two-stage critical prices; Analytical models; Computational modeling; Contracts; Games; Nash equilibrium; Numerical models; Supply chains; Linear market; Nash equilibrium; retail price; supply chain;
Conference_Titel :
Industrial Engineering and Engineering Management (IEEM), 2011 IEEE International Conference on
Conference_Location :
Singapore
Print_ISBN :
978-1-4577-0740-7
Electronic_ISBN :
2157-3611
DOI :
10.1109/IEEM.2011.6117892
