Pre‐emptive production and market competitiveness in oligopoly with private information

Amemiya, Yuki; Ishihara, Akifumi; Nakamura, Tomoya

doi:10.1111/jems.12410

Cited by 3 publications

(1 citation statement)

References 15 publications

(23 reference statements)

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“…For that, we assume a DCSC setting consisting of a manufacturer and downstream BMR and OR channels. The study is entirely analytical (Sana, 2022a), and we applied game theory (Ma & Meng, 2022;Zhao & Li, 2023;Amemiya et al, 2021) to examine the interactive analytics to obtain the equilibrium pricing strategies for the BMR and OR. Observing the value additions that the crisis cartel can provide, we attempt to answer the following research questions (RQs).…”

Section: Introductionmentioning

confidence: 99%

The opportunities and challenges of crisis cartel during demand disruptions: A game theoretic study

Raju,

T M,

Kumar

2024

Manage Decis Econ

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Crisis cartel refers to the collaboration between organisations during unprecedented conditions to counter the effect of disruption during an economic crisis. Despite its prevalence, scholarly attention to this phenomenon remains scant. Employing a dual‐channel framework involving manufacturers, online retailers (ORs) and traditional brick‐and‐mortar retailers (BMRs), the authors scrutinised the efficacy of crisis cartels in mitigating the impact of negative demand disruptions. Three distinct game theoretic frameworks were applied to model the interactive dynamics between the supply chain partners, namely, the horizontal Nash game, the Stackelberg game and the collusion game. It was observed that, during disruption under crisis cartels, the optimal price and profit of both the downstream channel partners increased, whereas the optimal order quantity decreased. Manufacturers and consumers are worse off in terms of profit and consumer surplus, respectively, during the crisis cartel engagement between BMR and OR. Nonetheless, a crisis cartel emerged as a potential solution to address negative demand disruptions. In evaluating post‐disruption cartels, the study finds the necessity of regulating crisis cartels. The findings offer valuable insights for policymakers, market regulators and practitioners, suggesting the need for strategic regulatory adjustments to effectively manage disruptions through the prudent utilisation of crisis cartel as a proactive management tool. The study expands existing theory by providing novel insights into the strategic interactions and dynamics within collaborative responses to demand disruptions, thus offering a pioneering approach to crisis management research.

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Section: Introductionmentioning

confidence: 99%

The opportunities and challenges of crisis cartel during demand disruptions: A game theoretic study

Raju,

T M,

Kumar

2024

Manage Decis Econ

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Acquisition, Aggregation, and Sharing of Information in Sequential-Move Aggregative Games

Cumbul

2022

American Economic Journal: Microeconomics

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We study quadratic payoff common-value sequential-move aggregative games with signaling. Applications include Stackelberg quantity-setting, public good contribution, common resource, gas emission, and manufacturer-retailer games. Whereas efficient aggregation of information occurs in large Stackelberg markets, it does not occur in the four remaining large markets. If all agents share their information with their followers, expected welfare increases in the Stackelberg and supply chain games and it decreases in the remaining three games. Finally, we characterize the conditions for payoffs and welfare to increase with more precise private or public information. We also provide robustness checks when the values are private. (JEL C70, D43, D82, D83, H41, Q21, Q54)

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Aggregation of Information in Large Stackelberg Markets

Cumbul

2018

SSRN Journal

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Pre‐emptive production and market competitiveness in oligopoly with private information

Cited by 3 publications

References 15 publications

The opportunities and challenges of crisis cartel during demand disruptions: A game theoretic study

The opportunities and challenges of crisis cartel during demand disruptions: A game theoretic study

Acquisition, Aggregation, and Sharing of Information in Sequential-Move Aggregative Games

Aggregation of Information in Large Stackelberg Markets

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