Surplus division and investment incentives in supply chains: A biform-game analysis
We model a four stage supply chain with respect to profit allocation by analyzing a biform-game. The resulting underinvestment problem is addressed and approaches to deal with it are investigated. By subsidies the underinvestment problem can be mitigated but not solved entirely. Vertical integration as alternative approach for solving the underinvestment problem is investigated.
underinvestment problem subsidies supply chain management shapley value biform game incentive system