A Method of Modeling and Solution Based on Non-zero-sum Cooperative and Dynamic Games for Nodal Enterprises in Supply Chain

Abstract

Based on some features of supply chain, game theory is utilized to analyze the behaviors of nodal enterprises in supply chain. the results of analysis show that the process of games among nodal enterprises belongs to non-zero-sum cooperative games, dynamic games and incomplete information games. Then, for the nodal enterprises in supply chain, the model of non-zero-sum cooperative and dynamic games is established. Furthermore, the core method is improved by introducing a subsidy variable. Solution of model by applying the improved core method and the Shapley value method combined with cooperative game theory is used as the criterion of payoff allocation for nodal enterprises. Finally, researching potentials and suggestions about supply chain coordination and incentive are proposed. The work of this paper provides the theory basis and the direction of further research for the coordination mechanism and the incentive mechanism among nodal enterprises.