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The inventories carried in a supply chain as a strategic tool to influence the competing firms are considered to be strategic inventories (SI). We present a two-period game-theoretic supply chain model, in which a singular manufacturer supplies products to a pair of identical Cournot duopolistic retailers. We show that the SI carried by the retailers under dynamic contract is Pareto-dominating for the manufacturer, retailers, consumers, the channel, and the society as well. We also find that retailers SI, however, can be eliminated when the manufacturer commits wholesale contract or inventory holding cost is too high. In comparing the cases with and without downstream competition, we also show that the downstream Cournot duopoly undermines the profits for the retailers, but benefits all others.
How does supply uncertainty affect the structure of supply chain networks? To answer this question we consider a setting where retailers and suppliers must establish a costly relationship with each other prior to engaging in trade. Suppliers, with un
We provide conditions for stable equilibrium in Cournot duopoly models with tax evasion and time delay. We prove that our conditions actually imply asymptotically stable equilibrium and delay independence. Conditions include the same marginal cost an
An increasing number of politicians are relying on cheaper, easier to access technologies such as online social media platforms to communicate with their constituency. These platforms present a cheap and low-barrier channel of communication to politi
This paper experimentally studies whether individuals hold a first-order belief that others apply Bayes rule to incorporate private information into their beliefs, which is a fundamental assumption in many Bayesian and non-Bayesian social learning mo
In this paper we propose a theoretical model including a susceptible-infected-recovered-dead (SIRD) model of epidemic in a dynamic macroeconomic general equilibrium framework with agents mobility. The latter affect both their income (and consumption)