We investigate the equilibrium behavior of decentralized supply chains with competing retailers under demand uncertainty. We also design contractual arrangements between the parties which allow the decentralized chain to perform as well as a centralized one. We address these questions in the context of two-echelon supply chains with a single supplier servicing a network of (competing) retailers, considering the following general model: retailers face random demands, the distribution of which may depend only on its own retail price (non-competing retailers) or on its own price as well as those of the other retailers (competing retailers) according to general stochastic demand functions.
REF ] investigate the equilibrium behavior of a decentralized supply chain with competing retailers under demand uncertainty.
Decentralized Supply Chains with Competing Retailers under Demand Uncertainty
DUKE UNIVERSITY, AND GRADUATE SCHOOL OF BUSINESS, COLUMBIA UNIVERSITY
Economics Computer Science